Article originally published by Automotive News on September 29th, 2020.
The list highlights the achievements of 400 businesses, based on a three-year revenue growth. To be eligible, companies must be headquartered in Canada, and must have generated revenue of at least $2 million in its most recent fiscal year and $200,000 in the same period three years prior.
DSMA reported revenue between $5 million and $10 million last year. It has 36 employees and operates a satellite office in Florida as well as a regional location in Michigan.
He said the company facilitates about 50 deals a year, but expects it could rise to 65 by the end of 2020, including the U.S. transactions. Overall, he said the company could reach the 260 mark.
Dealership consolidation is a growing trend within the automotive retail sector. By the end of 2019, 70 per cent of dealerships were controlled by groups that own two or more stores, according to DesRosiers Automotive Consultants.
Ahmad also credited the company’s commission-based performance structure, similar to what a commercial real-estate agent charges a client to sell its building.
“The three main reasons we are successful are: our people, our process and commission structure that is both fair to our seller while ensuring they achieve maximum value for their business,” he said.
“I know that sounds so stupid, but dealers (have an attitude) if you make me more money, I will pay you more money. Dealers really resonated with us because we share that philosophy. We are willing to share in the risk of our client when they are selling their business.”
Maxime Theoret, DSMA CFO, said the company’s U.S. business helped bolster its bottom line.