Dealer consolidation to strengthen in 2026 despite higher rates

Dealer consolidation in the equipment sector is expected to continue in 2026, even as higher floorplan interest rates and economic uncertainty persist. 

Dealer M&A activity has not slowed meaningfully, as buyers continue to pursue limited acquisition opportunities and M&A financiers remain cautious yet active, Pat Albero, partner, equipment and commercial truck divisions at Performance Brokerage Services, told Equipment Finance News.     

“Good market, bad market — it’s always a good market for someone who understands the investment.” — Pat Albero, partner, equipment and commercial truck divisions at Performance Brokerage Services

Buyers “only see so many opportunities per year, so the key is that sense of the fear of loss is as prevalent as if the interest rates were much lower than in years prior,” he said. 

OEM strategies also play an increasingly influential role in shaping transactions, as they look to balance expanding coverage areas with dealer partner risks, Albero said. 

“The OEMs want the partner that’s going to be the right person to cover a big swath of their map,” he said. “They need to find the best partner for the next 50 years.” 

International markets attracting growth 

OEMs’ desire to have growing entities represent a larger dealer share also expands into international markets, especially Canada, Albero said. 

Two of the three equipment dealer transactions in January involved Canada.  

• Canadian dealer SMS Equipment acquired Finnish dealer Suomen Rakennuskone Oy on Jan. 22.  

• Canadian John Deere dealers Greenvalley Equipment and Enns Brothers merged on Jan. 19.  

In addition, Nashville, Tenn.-based Bailey Equipment & Intralogistics acquired Equipment Depot’s Washington state operations on Jan. 16. 

The January activity follows two Canadian equipment dealer M&A deals in December 2025:  

• Calgary, Alberta-based Derek Stimson Holdings acquired CLAAS dealer Alberta Ag Center; and  

• Calgary-based Rocky Mountain Equipment acquired Alberta-based New Holland dealer Agri-Centre. 

Financial details of the transactions are not available. 

Market challenges  

Dealership financial health is a critical factor in valuations, Performance Brokerage Services’ Albero said. 

This is especially the case as elevated used-equipment inventories combined with higher floorplan interest expense and OEM facility mandates pressure margins and complicate exits, he added. 

“If the financials are not healthy, it can make it really hard to sell,” Albero said. “The interest is dragging down adjusted profit of the business, and it’s something they just can’t get out of.” 

While OEM partner selection, inventory discipline and dealer diversification will be central to dealer M&A deals, 2026 should be another good year for the transaction market, Albero said. 

“There’s going to be as many, if not more, transactions than in 2025,” he said. “It’s just a matter of who the parties are.” 

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