Most auto dealerships in Canada change hands at a multiple of their normalized earnings, typically EBITDA (earnings before interest, taxes, depreciation, and amortization), adjusted for owner add-backs. The multiple itself depends on your size, location, growth trajectory, and how much the business depends on you, the owner.
Auto dealerships are valued on their profitability, the mix of new, used, service, and parts income, and the real estate. Strong fixed-operations (service and parts) income, a desirable franchise, and owned or well-leased property lift value; reliance on new-vehicle margins alone, aging facilities, and owner-led management weigh it down.
Pushes the number up
- Strong fixed-operations (service and parts) income
- A desirable franchise or brand
- Owned real estate or a strong lease
- A management team running the store
Pulls the number down
- Reliance on thin new-vehicle margins
- Aging facilities needing reinvestment
- Owner runs the store day to day
- Inventory and floor-plan exposure
You put in your numbers. We show you two things.
Market data: Sector-specific transaction multiples based on aggregated business transaction reports. Updated quarterly.
Peer benchmarks: Estimates from verified owners in your sector and size range. See what similar businesses are worth, and compare your own expectations against market data and transaction multiples.
Takes about three minutes.
No pitch. No account required. Just your numbers in, and market context out.
Get My InsightsDealerships are valued on normalized earnings and the strength of fixed operations, with the real estate often assessed separately. Franchise, facilities, and management depth all move the number. Clariva shows the benchmark range for your size and province.
Higher for dealerships with strong service and parts income and a desirable franchise; lower for those reliant on thin new-vehicle margins. Enter your numbers to see your range.
Often the dealership and the property are valued separately. Owning the site, or holding a strong lease, gives a buyer security and can support the overall deal.
No. The estimate is for benchmarking and context only, and does not replace a formal business valuation. For a transaction, work with an M&A advisor or a Chartered Business Valuator (CBV).
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Not financial advice. Clariva is a data aggregation and compilation tool. All ranges shown on this platform are derived from publicly available transaction data and anonymized user submissions, and are provided for informational and benchmarking purposes only. Nothing on this platform constitutes a formal business valuation, financial advice, or a recommendation to buy or sell. Consult a qualified M&A advisor, Chartered Business Valuator (CBV), or legal counsel before making any financial or transactional decisions. Individual data is never shared or sold. Anonymized, aggregated insights may be used for industry research. You can request deletion of your data at any time by emailing tanner@clariva.ca.