Staying ahead is crucial in any industry, but it’s even more crucial in the market for buying and selling dealerships. This is especially true as we move into 2025, when the dealership landscape is evolving rapidly thanks to technological advancements, changing consumer preferences, and economic shifts.
So, if you’ve been thinking about entering a dealership buy-sell agreement, knowing the latest dealership news is critical. Whether you’re looking to buy or sell, navigating the dealership buy-sell market requires an understanding of current trends, careful preparation, and a strategic approach. Luckily, the experts at RVBS are here to help!
In this ultimate guide, we’ll cover what’s ahead for the dealership buy-sell market in 2025 with essential tips to help you successfully manage dealership transactions in this dynamic environment. So, keep reading to maximize your opportunities in a competitive market.
A Look at the Dealership Buy Sell Marketing in 2024
Understanding where the market is going helps to know where it’s coming from. So, before we get into our tips for navigating the dealership buy-sell market in 2025, let’s summarize the biggest dealership news in 2024.
- The Expansion of Camping World: Camping World has been actively acquiring RV dealerships in 2024, continuing its trend of growth despite overall market challenges. The company reported strong new vehicle sales and significantly increasing its used RV revenue.
- Increased M&A Activity: The RV dealership sector increasingly reflects trends in the automotive market, with more consolidation among larger dealership groups. This trend is likely to accelerate as demand for RVs remains strong.
- Record Valuations: The buy-sell market in the RV sector has seen increased valuations, primarily driven by robust dealership profits from both sales and service departments.
- Strong Seller Demand: In 2024, sellers were capitalizing on favorable conditions before potential increases in capital gains taxes
Navigating the Dealership Buy Sell Market in 2025: Best Practices
You don’t have to go the dealership buy sell market alone… Your trusted partners and professionals at RVBS are here to help. So, without further ado, here are our best practices to maintain for 2025 and insider thoughts on what we can expect to see.
Understanding Current Market Dynamics
Since the pandemic-driven boom, the RV industry has undergone a significant transformation. In the last few years, the industry has begun to see the normalization of sales volumes. However, the fundamentals that drive dealership valuations continue to shift.
That means keeping up with the latest market dynamics is crucial to ensuring you maintain favorable conditions at your dealership for buying and selling purposes.
Today, the most successful transactions focus on:
- Operational efficiency
- Service department capabilities
- Digital infrastructure
In addition to pure sales volume metrics, buyers are particularly interested in dealerships that successfully adapt to changing consumer behaviors, such as those with a robust digital sales process, strong service operations, and effective inventory management strategies.
Valuation Considerations for 2025
Speaking of valuation shifts, valuations in 2025 will continue to follow the trend of requiring a more nuanced approach than traditional multiples of earnings. Key factors influencing dealership values include:
- Service Performance: The service department of a dealership is a factor that can set it apart from another. That means high-performing service operations often command premium valuations due to their steady revenue streams and customer retention benefits.
- Geographic Market: No surprise here; a valuation of a dealership in a growing market or strategic territory continues to carry additional value, especially for buyers looking to expand their regional presence.
- Brand Relationships: Strong relationships with top manufacturers and maintaining these relationships through a transition remain crucial.
- Online Presence: Again, investments in e-commerce capabilities will be crucial in the world of dealership buying and selling in 2025. Customer relationship management systems and digital marketing infrastructure are also increasingly important in valuations.
- Workforce Stability: In the changing world of employees and work habits, personnel retention is crucial, particularly in the service and sales management departments. Showing strength in this area has become a critical factor in deal structures.
Preparing for a Successful Transaction
The number one tip we can provide to someone looking to enter the buy sell market in 2025? Preparing now! Preparation is a timeless trend that remains crucial for maximizing value. The best practice is to begin preparing for buying or selling at least 18-24 months.
During this time, you should focus on any potential issues. The most common being:
- Financial Documentation: To prove your business is successful, you can’t just say it is. You’ll be required to provide financial statements that are clean, accurate, and well documented. It’s most recommended to have at least three years of reviewed or audited financials.
- Operational Proccesses: Think about it. Do you want to buy a business that runs off the top of someone’s head? Or one that has implemented and documented systems for all departments? Begin organizing standard operating procedures across the board to demonstrate to buyers that a business is able to operate seamlessly and successfully after the purchase and transition.
- Facility Assessment: This should go without saying… but be sure to address any deferred maintenance or facility upgrades that could impact valuation. Similarly, you could consider investing in the building or space to boost the overall value of the dealership, especially in service areas.
- Management Transition Planning: Having a well-defined succession plan for management and key employees demonstrates preparedness and can distinguish your dealership from others.
Deal Structure Trends
Last but not least, we expect to continue seeing unique deal structure trends. Recently, there’s been a rise in creative deal structures that are designed to address the current market challenges. To get an idea of what we’re talking about, here are some common elements to consider exploring yourself:
- Earnout Provisions: Earnout provisions help bridge valuation gaps, better aligning seller and buyer interests during the transition period.
- Real Estate Considerations: Getting creative with real estate deals or lease arrangements is another way to make transactions more manageable for buyers while providing sellers with ongoing streams of income.
- Employee Retention: Again, your valued employees will matter in the buying or selling of your dealership. Today, many are structuring bonuses or equity participation for these valued employees to help ensure continuity.
The Final Word: Partnering with Dealership Buy Sell Experts
Of course, knowing the latest in the industry and what to expect from future trends is only the start. If you’re seriously considering buying or selling a dealership in 2025, the time is now to partner with buy sell experts to help you navigate the complex market. Luckily, you’re in the right place with the experts at RVBS.
RVBS offers over 60 years of combined RV industry experience and true industry leaders and insiders to work on your behalf. Across the industry, the RVBS team has a reputation for impressive results and ethical practices.
With RVBS by your side, you can maximize the value of your RV dealership or find the value best suited for your purchase. Learn more about our closed transactions, browse available listings, or get in touch with our team today.
Roger L. Nuttall served as President of Camping World, Inc. from January 2011. Prior to that, he was the Chief Operating Officer of FreedomRoads, LLC from January 2009 to January 2011, and the Executive Vice President and Chief Financial Officer of FreedomRoads, LLC from November 2003 to December 2015. From 1981 to 1983, Mr. Nuttall was a partner at McKay, Nuttall, and Reid, an accounting and consulting firm. Before that, he held various staff and management positions at Grant Thornton LLP from 1974 to 1981. From 1983 to 2003, Mr. Nuttall served as Chief Financial Officer and board member of Blaine Jensen & Sons, Inc., a multi-dealership RV company. He received a B.A. from Weber State University.
Mike has almost 30 years’ experience in the Recreational Vehicle (RV) Industry and provides advisory and consulting services to clients within that industry.
Scott Degnan is the Partner and Co-founder of RV Business Solutions and President of Degnan Management Group, Inc., a consulting firm.
Dom Bookman is the Chief Operating Officer and Investor Relations lead at RV Business Solutions. With 12 years of experience in the tech industry, Dom is a serial entrepreneur specializing in business development, marketing, and growth strategies for leading brands. He has successfully piloted startups and facilitated multiple exits for early-stage companies.