The auto retail sector is likely to see further consolidation as a number of smaller businesses sell up during the summer months. According to auto industry management services provider ASE, owners are taking advantage of strong offers from larger groups in order to exit an increasingly tough sector.

ASE transaction manager, David Kendrick, says “a significant number” of family owned auto retail businesses are looking to leave the sector in the next few months. The news follows the sale of the Willoughby Group to Pentagon, which was brokered by ASE's Dealermatch service.

“There are quite a few due to come to completion in the next month, and a significant number as the year moves towards the September market," said Kendrick. “People are not giving their businesses away though. There are people willing to pay the market price."

Kendrick believes that current market conditions have played a part: “April has been particularly hard, what with there seeming to be more bank holidays than working days.”

According to Kendrick, retailers who sell up are at present in a strong position: “There is an impression that these are distressed businesses, but this is not the case. These are owners with other businesses, or who are looking to retire, or who are wanting to sell while the market is good.

“This is not bottom feeding,” he added.