SALES & MARKETING
The current state of the marine buy-sell market
BY JON COUWENBERG
Our firm has experienced record-breaking dealership sales volume, closing 94 transactions in 2024 and 91 in 2025. With 13 offices across North America specializing in mergers and acquisitions for automotive, RV, marine, powersports, commercial trucking and equipment dealerships, we are seeing similar trends form throughout these industries.
When evaluating the buy-sell environment, we focus on two specific factors: marketability and value. Marketability assesses the volume of buy-sell activity, the balance between supply and demand for acquisitions and the overall likelihood of a sale. Value speaks to dealership pricing. The two are closely connected, and both have shifted drastically over the last twelve months.
This article provides insight into current market conditions for the sale of a marine dealership, including the supply of acquisition candidates versus buyer demand, the effects of higher interest rates, shifts in post-pandemic earnings and how they collectively influence valuations.
Market overview
Activity and values declined over the last 12 months as dealers awaited clarity surrounding the retail environment, the election, interest rates, tariffs and even the“ new normal” for profitability. After several years of unprecedented performance, the market shifted in a significant manner, and both buyers and sellers are adjusting expectations in response to changing economic and operational realities.
Current conditions indicate a steep decline in consumer confidence, while inventory levels continue to outpace demand for some dealers. Profits have been further impacted by rising advertising costs, payroll expenses, elevated floorplan and margin compression.
Business loans for acquisitions are also considerably more costly than before, and this debt service impacts the bottom line for any acquisition. A looming uncertainty remains that is impacting the overall acquisition sentiment, which have made buyers more conservative when preparing their forecasts and valuations.
Despite these headwinds, there are meaningful reasons for optimism as we head into 2026. Our experience suggests that periods of uncertainty are naturally the precursor for the next wave of healthy and sustainable buy-sell activity.
As interest rates stabilize, inventory levels normalize and dealers can rely on a more predictable earnings environment, buyer confidence should improve and the appetite for acquisitions should increase. The marine industry continues to benefit from long-term demographic tailwinds, including an aging ownership base, generational transitions and sustained interest in boating as a lifestyle.
As these factors converge, we expect market clarity to return, valuations to stabilize and quality dealerships to attract buyer attention. For prepared sellers and buyers alike, the coming cycle presents opportunity for thoughtful, wellstructured deals that create value for all parties involved.
Acquisition candidates and buyer demand
As dealers enjoyed record-breaking profitability during the pandemic and have since experienced a slowdown, dealers of all sizes are exploring exits.
With an increase in acquisition candidates coming to market, buyers have become more selective in the stores and markets they pursue and are looking for value in the buy. The basic principles of supply and demand are at play.
In recent years, many dealers faced operational challenges, including staffing constraints, inventory management and higher expenses overall. For these reasons, some buyers shifted their focus toward optimizing performance within their existing operations before resuming acquisition activity.
However, as the larger dealer groups are resolving their operational challenges, they continue to seek high-quality dealerships that align with their long-term growth plans. Regional groups remain attracted to local opportunities that they can easily integrate into their portfolios and share expenses across multiple rooftops.
Valuation challenges post-pandemic
In thirty years in business, we have never seen fluctuations in profitability like those experienced from pre-pandemic to post-pandemic.
As such, buyers are placing less emphasis on historical performance, excluding Covid-19 results, and are instead focusing on profitability in 2024 and 2025, and projected future cash flow. However, in today’ s uncertain environment, confidently projecting future cash flow has become increasingly difficult.
Given these dynamics, we encourage you to evaluate your personal and financial goals and determine whether a sale in today’ s market will support those objectives. Otherwise, it may be worth continuing to operate until profitability improves and market conditions stabilize.
There is no sense in trying to time the market, and market conditions alone should not drive the decision to sell. When the time is right for you and your family, we will assist you in evaluating the market conditions, determining marketability, and positioning you to achieve the best possible outcome.
Jon Couwenberg, jon @ performancebrokerageservices. com, is a partner and the director of the marine division for Performance Brokerage Services.
24 JANUARY 2026 www. boatingindustry. com