Insight from 501+ conversations with dealers: A candid interview with Farid Ahmad, CEO of DSMA

With decades of experience in the automotive industry, Farid Ahmad, founder and CEO of Dealer Solutions Mergers & Acquisitions (DSMA)—North America’s leading automotive M&A firm with 512 completed transactions—has witnessed the industry’s highs and lows. He understands the emotional weight of buying, selling, and growing businesses. In this conversation, Ahmad shares candid insights from his discussions with dealers across North America.

Q: With 512 completed transactions in DSMA’s portfolio, what have you observed to be the most unexpected challenge dealers have faced when it comes to buying or selling their businesses?

Ahmad: Well, there are three main challenges: Manufacturer approval, Financing, and Qualified staff. Manufacturers are tightening requirements, reducing dealer points, and demanding profile upgrades. Financing is harder to secure, especially for smaller dealerships and first-time buyers. The shortage of qualified staff, including technicians and other key roles, is straining operations. These challenges will continue to impact dealership growth and sustainability.

Q: When navigating those challenges, what qualities do successful dealers exhibit both in business and personally, and what leadership traits do you admire most in those who’ve inspired you?

Ahmad: Dealers are entrepreneurs driven by community and customer focus. They care deeply about their people, stay dedicated to their business, and constantly seek improvement. With strong yet fair leadership, they show compassion while making bold, unemotional decisions. As visionaries, they prioritize team development, strong relationships, and top technology to ensure success—an approach that sets them apart.

Q: How often do legacy and family influence your conversations with dealers, and how does their personal connection to the business impact the decisions they make about their future?

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Ahmad: Very frequently. Selling dealers, whether family is involved or not, consider their entire family and want to leave a legacy of success. Thew selling dealer wants to leave behind a legacy of success which is not always the case; they take the sale personally and may be offended by criticism of what they’ve built. We all have egos, but dealers take great pride in their accomplishments and expect buyers to recognize that in their offers. Saying that, automobile dealers are some of the best negotiators in the world so the negotiation between buyer and seller can become quite intense and emotional.

Q: In your countless conversations with dealers across North America about selling their business, what emotions do you most often encounter?

Ahmad: Most dealers that get to the stage of selling start the process feeling uncertain, fearful and apprehensive and many will ask themselves the same questions: Are they selling at the right time? Will they get what they are asking for? What will happen to their staff? How much will the taxes be? Is this the best time to sell?  And most of all, what will I do after I sell?

Q: What’s the toughest part for dealers to open up about when selling their business, and how does DSMA guide them through it?

Ahmad: A few things: when DSMA conducts an in-depth analysis and valuation, dealers often realize that certain problem areas could have been addressed earlier and, in some cases, these areas had significantly impacted the value of their business. During this highly emotional process, we play multiple roles. We’re not just advisors, but also trusted mentors, lawyers, psychiatrists, best friends, and coaches and I am proud to say we guide them through each step with empathy, support and professionalism.

Q: Has there been a moment in your conversations with dealers that made you stop and realize that the industry is at a real crossroads?

Ahmad: Yes, during the COVID-19 pandemic, no one knew how it would affect their business, future, families, or the value of their business. And today, with electrification, the economy, and tariffs, the future seems uncertain. Our industry struggles in times of uncertainty; manufacturers face challenges, lenders lose confidence, and car buyers delay decisions. This results in a lack of confidence. We’re at that crossroads now, but dealers are the best at adapting quickly to market changes.

Q: What are the opportunities that dealers are holding onto right now that give them hope and optimism in the face of these challenges?  

Ahmad: That the market will eventually correct itself and return to some form of normality. Although what is “normal”? 2026 will be an interesting year. Some believe that with interest rates dropping, business will improve, while others question the impact of tariffs and rising vehicle prices, fearing a decline in business. In my 15 years in this industry, I have never seen or heard of more confusion and mixed thoughts on our industries and its future.

Q: Finally, after completing over 501 dealership transactions, what do you wish the broader business community understood about the emotional weight of being a dealer, and how does DSMA help clients navigate these misconceptions, especially when it comes to the bigger, personal decisions they face?

Ahmad: I wish people understood that being a dealer is NOT easy and not for everyone. It’s filled with stress, late nights, negotiations, compromises and sacrifices. Our clients know that DSMA has seen it and experienced it all before. They know we truly understand their wins and losses and that sometimes things are out of the dealer’s control, and we understand these facts and don’t judge them for that. Running a dealership is not for the fainthearted, things will not always go the way you plan. Saying all that, it is the most exciting and most of the time the most rewarding business on this planet and we love it.

As Farid Ahmad explains, success in automotive dealerships goes beyond numbers and transactions. His insights highlight that buying or selling a dealership is an emotional journey. Yet, one thing remains unchanged: successful dealers stay resilient, driven by strong leadership and a commitment to growth.

If you are finding yourself standing at a crossroads with your business, visit www.dsma.com or call +1 833-650-4188 today to see what options you might have on the horizon.