Car Dealership Guy Podcast

The End of the M&A Lottery – Why Earnings Quality Now Outweighs the Multiple | George Karolis, President of The Presidio Group

Jan 27, 2026
Guest
George Karolis
George Karolis, President of The Presidio Group, an auto‑retail investment banker with deep M&A experience, breaks down why earnings quality now matters more than sky‑high multiples. He discusses who is buying and selling, why big groups keep getting bigger, tech as a valuation lever, brand and geography-driven demand, and where diligence trims value.
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ADVICE

Invest In Tech To Boost Productivity

  • Invest in technology that increases productivity, especially AI, service tools, and CRM enhancements.
  • Track tech usage and clean your tech stack to focus on tools that drive measurable efficiency gains.
INSIGHT

Active Buyers, More Selective Criteria

  • Buyers remain active: ~59% of dealers want to grow this year and interest rises over a multi-year horizon.
  • Karolis predicts 2026 as a 'year of discipline' with buyers focusing on brand, geography and sustainable earnings.
INSIGHT

Fixed Ops And Used Cars Stabilize Earnings

  • Fixed operations and pre-owned are the most reliable earnings stabilizers this year.
  • Over 80% of surveyed dealers see parts & service as key to sustaining earnings amidst new‑vehicle margin pressure.
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