The Presidio Group LLC, an independent merchant banking firm focused on mergers and acquisitions, capital raising and investments in the automotive retail and consumer mobility sectors, announced the launch of its inaugural quarterly publication focused exclusively on automotive retail performance, technology and M&A trends.

“Presidio Perspectives: A Quarterly Outlook on Auto Retail and M&A Trends” showcases a first-time partnership between NCM Associates and The Presidio Group with the debut of the Presidio-NCM Average Dealership Performance Trends report.

The report is based on aggregated financial results of 4,000-plus U.S. franchised dealerships of all brands and sizes that work with NCM Associates, a provider of 20 groups, consulting and training to dealers across the country.

“The industry is moving into an era we are calling the ‘Great Normalization’ as pandemic-driven peak dealership profitability ebbs,” said Presidio President George Karolis. “Now, more than ever, the industry needs a fresh focus on the various elements that are driving disruption and change in auto retail. As our Presidio-NCM metrics and survey results bear out, the headwinds in the industry are real, and the elements of normalization are more apparent as the year draws to a close. We are proud to partner with the experts at NCM to provide a clear view into the future of auto retail.”

Said Paul Faletti, CEO of NCM Associates: “We thought it was important to share this information as the industry navigates significant change. We’ve been through an extraordinary recent time, but the business is evolving fast. NCM and Presidio are providing crucial data and analysis that can help all dealers better manage their business through the near-term headwinds.”

With the publication of the report, Presidio is expanding its capabilities as a leading voice in the industry offering comprehensive analysis, trends and opinion under its Presidio Perspectives thought leadership initiative.

Also debuting in the quarterly report:

• The Presidio Valuation Index – an approach intended to help dealers triangulate the value of dealerships using several data points and formulas that will be updated each quarter including brand-specific blue-sky earnings multiples, revenue multipliers and return on investment percentages.
• The Presidio Group’s inaugural Dealer Direction Survey – a quarterly read of the market’s pulse informed by survey takers representing thousands of franchised dealerships. They weigh in with their outlook on dealership profitability and valuation, their interest in buying or selling dealerships and their opinions on what will most challenge dealers in the short and long term. They also rate vehicle brands on how coveted they are as part of the Presidio Brand Desirability Rankings.

Presidio’s report also offers a robust look at the profitability and performance of public dealership groups; M&A trends including transaction pace and outlook; auto retail technology trends; and an examination of disruptive forces at play in the industry.