Haig Partners advises on record-setting sale of Hodges Mazda dealerships to Morgan Automotive Group

Haig Partners LLC, a leading U.S.-based buy-sell advisory firm specializing in auto and truck dealerships, has facilitated the historic sale of two high-performing Mazda dealerships in Florida—Hodges Mazda of the Avenues in Jacksonville and Hodges Mazda of St. Augustine. The sale, executed to Morgan Automotive Group, Florida’s largest automotive retail network and the eighth-largest dealership group nationally, marks a milestone in the U.S. auto dealership sector. According to transaction details disclosed by Haig Partners, the Jacksonville location achieved the highest blue sky value ever recorded for a Mazda franchise, setting a new industry benchmark.

The deal also represents a full exit from automotive retail for the Hodges family, long-time stewards of the Mazda brand in northeastern Florida. David Hodges and Dan Hodges, the dealerships’ principal and minority owners respectively, are redirecting their focus to non-automotive ventures including sports franchise ownership, insurance operations, and agribusiness. Industry stakeholders view this transaction as a powerful signal of sustained investor confidence in premium franchises, particularly those embedded in high-growth regions like Florida.

Why is the Hodges Mazda dealership sale being described as a record-setting transaction in auto retail?

The sale of Hodges Mazda of the Avenues stands out not just for its value but for the precedent it sets in brand-specific valuation metrics. The term “blue sky value” in dealership M&A refers to the intangible worth assigned to a franchise’s goodwill, reputation, and earnings potential above asset value. While Mazda has historically commanded lower blue sky multiples than premium German or Japanese luxury brands, the Hodges sale defied this norm. Though the financial figures remain undisclosed, industry insiders confirm the transaction involved a premium valuation, one that reflects years of operational excellence, customer retention, and deep brand alignment.

Haig Partners, which has brokered over 510 dealership sales worth more than $10 billion, attributed the record valuation to several factors: the scale of operations, the Jacksonville location’s profitability, and the broader economic context in which buyer demand for franchised dealerships remains elevated. As a leader in Florida dealership M&A, Haig has now advised on 95 such deals in the state—more than any other firm.

What factors influenced David and Dan Hodges’ decision to exit the auto retail industry after decades of leadership?

David Hodges, a respected figure in southeastern U.S. auto retail, previously served as CEO of the Scott-McRae Automotive Group and more recently led the establishment of the Hodges Mazda franchises. In a personal statement, Hodges noted that the decision followed a period of spiritual introspection. “It became evident that I was being led to move to the next chapter,” he said, citing a 35-year-long career that culminated in helping shape Mazda’s dealer strategy through his role as Chairman of the Mazda Dealer Advisory Council.

Dan Hodges, a trusted partner in the dealership operations, brought operational leadership to the group and oversaw the day-to-day functioning with a focus on people-first management. With this exit, David Hodges will increase his involvement in 925 Partners, an independent insurance agency, while Dan will expand a successful farming operation in Georgia. Together, they also maintain stakes in several minor league sports franchises—further indicating a broader entrepreneurial diversification.

This move reflects a growing trend among seasoned dealership owners who, after decades in retail automotive, are choosing strategic exits amid favorable market conditions. Analysts view such timing as opportunistic given rising interest in regional consolidation, historically low dealership supply, and macroeconomic stabilization following volatile interest rate cycles.

How does this acquisition support Morgan Automotive Group’s dealership expansion strategy across Florida?

Morgan Automotive Group has established itself as Florida’s most aggressive and strategic acquirer of auto dealerships. With more than 60 franchises under its umbrella, the group focuses on purchasing high-performing, culturally aligned, locally respected stores that can be integrated while preserving their legacy and workforce.

According to Larry Morgan, Chairman of Morgan Automotive Group, the decision to acquire the Hodges Mazda locations was rooted in personal respect for David and Dan Hodges, along with confidence in the brand’s long-term market positioning. “We’re honored to continue the legacy that David and Dan built at Hodges Mazda,” Morgan stated. “Their leadership has set a high standard for customer service and dealership operations.”

Morgan Automotive’s growth strategy hinges on maintaining the community-driven essence of its acquisitions while using centralized systems to optimize logistics, financing, and digital sales capabilities. With Jacksonville and St. Augustine serving as high-growth corridors, this acquisition allows Morgan to strengthen its footprint in Florida’s northeastern belt—further enhancing its customer reach and brand equity.

What does institutional sentiment reveal about dealership consolidation trends in 2025?

Industry sentiment heading into the second half of 2025 remains bullish on dealership M&A, especially in Sun Belt states like Florida, Texas, and Georgia. Institutional buyers and private equity-backed groups continue to seek high-margin franchises with regional strength, and Mazda—while traditionally mid-tier—has seen valuation uplift through consistent performance, modern branding, and a tech-forward vehicle lineup.

Analysts note that many prospective sellers are influenced by a combination of personal succession planning and macroeconomic confidence. The easing of interest rate pressures and stabilization of new vehicle inventories have made 2025 an attractive year for transactions. For buyers, the logic centers on acquiring long-term earnings streams from assets that offer geographic diversity and strong customer pipelines.

Haig Partners’ Managing Director Kevin Nill, who led the Hodges transaction, stated that “buyer demand remains exceptionally strong,” adding that strategic exits such as the Hodges deal signal to the market that now may be one of the most advantageous periods in recent memory to consider selling.

How does the Hodges–Mazda–Morgan Automotive transaction influence broader regional dealership dynamics?

The Florida dealership market is undergoing rapid consolidation as national groups aim to build dominant regional portfolios. Jacksonville and St. Augustine are particularly attractive due to their population growth, tourism economy, and demographic alignment with family-oriented vehicle segments—areas where Mazda performs well.

By acquiring the Hodges stores, Morgan Automotive has secured dealerships with strong local brand equity, experienced personnel, and well-located facilities. This not only extends Morgan’s physical network but also removes a key competitor from the region—thus enhancing operational scale and cross-brand leverage.

Experts suggest that the deal could spark additional M&A activity in Florida as smaller dealerships or independent operators explore exit options in the wake of high-value, high-visibility deals like this one. For Mazda, the transaction affirms that its brand can command best-in-class valuations in the right operational and geographic contexts.

What is the outlook for future dealership sales, and how might Haig Partners influence upcoming transactions?

Looking ahead, analysts forecast that dealership sales volume may rise through 2026, driven by a combination of generational succession planning and favorable market dynamics. Blue sky multiples may vary by brand and geography, but strong franchises with top-tier operations and customer satisfaction metrics are likely to continue attracting record offers.

Haig Partners is expected to remain at the center of this trend, having built a reputation for confidentiality, strategic alignment, and delivering high-value outcomes for its clients. The firm’s expertise spans traditional auto, RV, and heavy truck dealerships, giving it a wide lens on valuation mechanics and buyer dynamics.

Recent transactions brokered by Haig Partners—including the sale of Duval Honda, Duval Acura, and Subaru of Gainesville—demonstrate its command over Florida’s dealership landscape. Its authorship of The Haig Report® and involvement in NADA’s dealership M&A guide further reinforce its leadership role in industry insights and best practices.