Powersports M&A Deals Climb as Dealerships Continue to Consolidate

Powersports mergers and acquisitions are on the rise as several dealerships consolidate from standalone shops into dealer groups.

Most recently, Richardson Motorsports — which offers a full line-up of powersports vehicles from Yamaha Motor Corp., BRP Inc., and Polaris Industries Inc. — inked a deal through Powersports Listings M&A to sell the dealership. The decision to sell came after the owner announced his retirement after 20 years with the dealership, according to a company press release.

Jay Bell, a Dallas area entrepreneur and auto sales executive, struck a deal along with partner Anthony Paulauskis to take over the Dallas-based dealership’s operations on Jan. 10, and change the dealership’s name to TXA Powersports Inc.

Additionally, the potential sale of two Florida-based dealerships — Six Bends Harley-Davidson and Naples Harley-Davidson — were also announced this week.

Scott Fischer, president of Scott Fischer Enterprises, plans to sell the dealerships to TMCFM Inc., according to a published report. Terms of the acquisition weren’t disclosed.

TMCFM Inc., known as The Motorcycle Company, consists of dealerships in West Palm Beach, Fla.; Denver, Colo.; North Billerica, Mass.; Olathe, Kan.; and Riverside and Westminster, Calif.

As more powersports dealerships consolidate from standalone shops into dealer groups, the larger banks and financial institutions will begin to see more dealer business, Ozzie Giglio, dealer-operator for The Windy City Motorcycle Co., told Powersports Finance last April.

Dealer acquisitions have occurred more in 2017 versus previous years, and the trend appears poised to continue this year.

As the dealerships consolidate, the lending institutions have to change because some of those financial institutions have size limitations, Giglio previously said. For example, “some of the banks we were able to do business with five to six years ago, we can’t today because of our size.” Because lenders have a cap on how much they lend, when dealerships exceed that limit they have to switch to a bank with a higher capacity, he added.

“But having a financial institution that is bigger and broader, and has more lending capacity, that is a good thing for the dealer and the consumer as well,” he said. “Every dealership definitely needs some level of financial services support, and when you consolidate, you can use your size to reduce the expense in any one particular dealership.”

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