In any M&A transaction, the financials tell only part of the story. The rest? It’s buried in the paperwork—specifically, the vendor contracts. When evaluating a company for acquisition, one of the most overlooked (yet critical) steps in diligence is reviewing the company’s vendor agreements. These contracts often contain clauses that can materially impact deal structure, cost assumptions, and post-close operations. Here’s what to look for—and why it matters: Types of Contracts Commonly Held by Businesses: The Bottom Line: Every contract has implications. Some are manageable; others can be deal breakers. At Colonnade Advisors, we guide buyers and sellers through … [Read more...]

Nearly half of RIA founders are nearing retirement, yet only 20% believe their next-generation talent can afford to buy them out – down from 38% just four years ago. With internal succession pathways narrowing, external M&A is becoming the default succession strategy for many founders. Whether to achieve liquidity, solve for retirement, or ensure their clients are supported with scale and technology, owners are increasingly partnering with strategic buyers or integrators to secure their legacy. At Colonnade, we’re seeing founders ask: If you’re exploring retirement or succession options, now is a pivotal time to understand your options. Read our latest … [Read more...]

RIA M&A is off to a record-breaking start this year. In just the first quarter, deal activity reached unprecedented levels, reflecting continued momentum from last year and underscoring the industry’s strong fundamentals. What’s driving this surge? Combine these trends with aging ownership, rising compliance complexity, and the need for tech-enabled client experiences – and it’s clear why 2025 is shaping up to be another defining year for RIA M&A. Is your firm ready to capitalize on this market or address succession proactively? Let’s connect to discuss what these trends mean for your strategic options this year. 📄 Want to learn more? Read Colonnade’s recent … [Read more...]

You’ve chosen your buyer. You’ve signed the Letter of Intent. The handshake is nearly there. Now comes Phase 4: Confirmatory Diligence and Closing—a stage that’s both exhilarating and intense. At Colonnade Advisors, we often say: “The deal isn’t done until it’s closed.” This final stretch is where precision, patience, and persistence matter most. From LOI to Final Signing After the LOI is signed and exclusivity begins, the buyer gains full access to your company’s inner workings. Redactions in the data room are lifted. Contracts are fully disclosed. Customer names, pricing, and employee details are shared. Buyers may commission third-party audits, including: Their goal? … [Read more...]

With indications of interest submitted and serious buyers identified, the sale process enters Phase 3: Due Diligence & Management Presentations—a critical inflection point in any transaction. This is where buyers dig deeper. It’s also where relationships are built—and often where deals are won or lost. From Broad Interest to Qualified Contenders After reviewing written Indications of Interest (IOIs), we typically narrow the field to a handful of buyers—usually four to six—who advance to the next round. These buyers have proposed compelling valuations and deal structures and have shown the seriousness needed to proceed. At this point, the transaction becomes more real for both … [Read more...]

After weeks of preparation and analysis in Phase 1, the second phase of selling your company marks a pivotal shift: going to market. This is where strategy meets execution—and where momentum begins to build. At Colonnade Advisors, we approach this marketing phase with discipline and intention. It’s not just about sending out a few emails. It’s about positioning the company, identifying the right buyers, and creating competitive tension that leads to the best price and terms. Building the Buyer Universe The first step in this phase is finalizing the buyer list. Depending on the industry and client preferences, this list might include anywhere from a handful to hundreds of … [Read more...]

Selling a company isn’t a moment—it’s a process. And like any high-stakes transaction, success depends heavily on preparation. At Colonnade Advisors, we’ve seen time and again that the most successful outcomes start with a rigorous first phase: the Pre-Marketing Phase. This is where a seller lays the groundwork, evaluates the business with a buyer’s lens, and ensures the company is positioned for maximum value. What Happens in the First Phase? Think of this as your internal due diligence period. It’s a deep and honest assessment of your company—its financials, operations, legal structure, and market position. Done right, this phase can prevent deal fatigue down the road and minimize … [Read more...]

As digital infrastructure becomes integral to business operations, cybersecurity is no longer just an IT concern—it’s a critical factor in enterprise value, operational continuity, and M&A transaction success. Cybersecurity refers to the practice of protecting systems, networks, and data from threats like hacking, malware, and unauthorized access. For buyers and investors, understanding a target company’s cybersecurity posture can reveal hidden risks—or reassure them of long-term resilience. Key Areas of Cybersecurity Assessment Testing & Audits Buyers now demand comprehensive documentation across several testing domains, including: Buyers also look for: These … [Read more...]

KPMG Canada just acquired LlamaZOO, a 3D geospatial data platform enabling digital twin visualizations for natural resource projects. Why does this matter? Because strategic buyers—and financial sponsors—are actively hunting for assets in the digital twin space, and the supply of quality targets is extremely limited. We expect to see more deal announcements in the months ahead, but valuations will remain strong due to scarcity. 📄 For a deeper dive, see our whitepaper on M&A in the Digital Twin sector. … [Read more...]

40% of insurance agency principals are over age 60. 20% are over 65. And 75% of those planning to retire within 5 years have no formal succession plan. This generational transition is one of the most actionable M&A opportunities in the health and wealth brokerage sector today. These agencies often have: For buyers with infrastructure, capital, and growth ambition—it’s a rare chance to acquire legacy-rich firms at attractive valuations while solving a looming industry challenge. Colonnade is advising through this shift. If you’re thinking about selling—or consolidating—let’s talk. … [Read more...]

Even in a choppy M&A market, insurance premium finance businesses are holding strong. In Q1 2025, we saw: Our latest whitepaper from Colonnade Advisors explains why now may be a smart time to start planning your exit or recapitalization. If you’re a founder or executive in the IPF space, this report is written with you in mind. Let’s discuss what your company could be worth today. #BusinessOwners #InsuranceFinance #CompanySale #ExitPlanning #PrivateEquity #ColonnadeAdvisors #MandA … [Read more...]

While broader M&A activity started the year with a surge before fading, insurance premium finance remained a pocket of relative stability. In our Q1 2025 update, Colonnade Advisors highlights how this sector—with its recurring revenue, niche underwriting, and attractive capital-light profile—continues to draw sustained investor interest. Key themes: 📥 Insurance Premium Finance Quarterly Update: 2025 First Quarter We’re tracking strategic activity closely—reach out if you’re evaluating your next investment or platform expansion. … [Read more...]

The $1 trillion equipment finance industry entered 2025 with strong momentum, but rising charge-offs, macro uncertainty, and tariff-driven caution cooled M&A and origination activity in Q1. Despite an 8.9% drop in new business volume and declining confidence among executives, key fundamentals remain resilient: In our latest Equipment Finance report, Colonnade Advisors breaks down what’s shaping the market and what to watch next. If you’re thinking about your next strategic move—buy, sell, or grow—let’s talk. … [Read more...]

If you’re a business owner in the equipment finance space, here’s what we saw in Q1 2025: But this is not a wait-and-watch market. Strategic acquirers are actively positioning for the second half of the year. Deals are still getting done—and when they are, it’s about acquiring talent and relationships. Our Q1 2025 Equipment Finance M&A Report highlights the latest transactions, trends, and the strategic rationale behind each deal. Now is the time to prepare. Colonnade Advisors is a leading M&A advisor in this sector—we’re ready when you are. … [Read more...]

Business owners considering a sale this year are navigating a tricky—but opportunity-rich—environment. In Q1 2025, we saw: But headwinds remain: inflation, trade uncertainty, and policy shifts are keeping some buyers cautious. We unpack it all in our Q1 2025 M&A Update—written for sellers, not just dealmakers. Let’s connect if you’re wondering what your company is worth in today’s market. … [Read more...]

The first quarter of 2025 offered a mixed—but telling—portrait of M&A activity across the middle market. Early momentum drove a 210% quarter-over-quarter surge in deal volume, only to be tempered by inflationary pressures and shifting trade policies. In Colonnade Advisors’ latest whitepaper, we break down: 📥 M&A Quarterly Update: 2025 First Quarter Let’s talk if you’re considering a transaction this year—conditions are evolving fast. … [Read more...]

As regulatory frameworks around personal data become more complex and globally enforced, compliance with data privacy laws has become a top priority in M&A due diligence. Whether you’re acquiring a SaaS company, a healthcare platform, or a direct-to-consumer brand, the way a business handles PII (Personally Identifiable Information) can significantly impact risk exposure, valuation, and deal structure. This blog post explores three key data privacy regimes—GDPR, CCPA, and DPIAs—that often come into play during diligence and post-close integration. 🌍 GDPR – General Data Protection Regulation (European Union) What is it? The General Data Protection Regulation (GDPR) is the EU’s … [Read more...]

J.D. Power’s May forecast reveals a complex but opportunity-rich environment for dealership groups and service providers: Key Highlights: What’s driving it? Consumers rushed spring purchases to beat potential tariff-driven price hikes. While that urgency is fading, the underlying economics remain solid—even as pricing actions are now expected to shake out late in the year. J.D. Power projects tariffs could inflate automaker costs by $4,275 per vehicle—a looming margin challenge for OEMs and possibly a margin opportunity for agile players in the retail and service ecosystems. What this means for business owners: At Colonnade Advisors, we help entrepreneurs make … [Read more...]

That’s the average age of light vehicles on the road today, a record high according to S&P Global Mobility. This aging trend isn’t just trivia—it’s a signal. From 2015–2019, the U.S. saw a boom in new vehicle registrations. Those vehicles are now rolling off warranty and into the aftermarket sweet spot for maintenance, repair, and service contract opportunities. Some key insights: This trend has powerful implications for: At Colonnade Advisors, we’re helping founders capitalize on macro tailwinds like these in the M&A market. Let’s talk if you’re thinking about what’s next. … [Read more...]

In the age of data-driven businesses, few diligence topics raise red flags faster than poor handling of PII—Personally Identifiable Information. If your company collects, stores, or processes personal data, it's essential to understand what PII is, how it's regulated, and what acquirers will expect during diligence. Mishandled PII can lead to lawsuits, regulatory penalties, and—in the worst cases—deal termination. This post defines PII in plain terms and outlines the key diligence areas buyers review to assess data privacy, security, and compliance readiness. 🔍 What Is PII? PII stands for Personally Identifiable Information—any data that can be used to identify, locate, or … [Read more...]

Buyers conduct deep diligence on proprietary software to: 📂 What Documentation Is Reviewed in Diligence Below are the core areas of software diligence, based on our checklist used in real transactions: 01. Development 02. Licensing & Ownership 🔐 Buyers want to see a clear chain of title to the software. Missing agreements with contractors can be a red flag. 03. Source Code & Dependencies ⚠️ Use of open-source libraries without license compliance is a common diligence issue. 04. Performance & Scalability 05. Security & Compliance 🔐 Security is one of the most scrutinized areas, especially for SaaS products with multi-tenant … [Read more...]

Is your Medicare-focused brokerage primed for M&A in 2025? With over 11,000 Americans turning 65 each day  and 54% of eligible beneficiaries enrolled in Medicare Advantage, the market is ripe for strategic exits. At Colonnade Advisors, we see investors targeting scaled, tech-driven platforms with predictable, recurring revenue and high-margin cash flows. Key drivers include: This demographic tailwind creates a premium valuation environment for agencies built specifically for volume in the individual health segment. Considering an exit this year? Now is the time to engage M&A specialists who understand your unique growth drivers and can position your firm for maximum … [Read more...]

2025 is shaping up to be a landmark year for marketing technology M&A Meanwhile: And the buyers aren’t slowing down: If you’re a Martech founder wondering if now is the time to explore a sale, the market is telling you: it might be. At Colonnade Advisors, we specialize in navigating high-value exits. Let’s talk. … [Read more...]

As more businesses move toward hybrid infrastructure, cybersecurity threats increase, and uptime expectations rise, network documentation has become a crucial component of M&A due diligence—especially in tech-enabled and data-driven businesses. At Colonnade Advisors, we work with both buyers and sellers to assess the completeness and quality of a company’s IT documentation. A well-documented network environment signals operational maturity, improves transition planning, and reduces risk. In this blog post, we outline the essential network documents that should be maintained and reviewed during diligence—and why they matter. Core Infrastructure Documentation Data Center & … [Read more...]

Environmental risks are easy to overlook—until they become deal-breakers. Whether you’re buying, selling, financing, or developing a business with physical assets, environmental due diligence is a non-negotiable part of the process. At Colonnade Advisors, we’ve seen firsthand how a lack of environmental clarity can delay or derail a transaction. That’s why we work closely with buyers and sellers to ensure environmental diligence is thorough, organized, and forward-looking. In this post, we’ll walk through the two primary types of environmental site assessments (ESAs)—Phase I and Phase II—and explore additional documentation that buyers often request to evaluate a company’s … [Read more...]

In March, U.S. new-vehicle sales surged to nearly 1.56 million units, marking the highest seasonally adjusted annual rate (SAAR) in four years at 17.8 million. This spike was largely driven by consumers rushing to purchase vehicles ahead of the anticipated 25% import tariffs announced on March 26. However, April told a different story. Sales cooled to approximately 1.46 million units, with a SAAR of 16.4 million. The early-month buying frenzy led to a significant drawdown in inventory, dropping to 2.69 million units and reducing the days’ supply to 70. Implications for Dealerships and F&I Providers: At Colonnade Advisors, we understand the complexities of the automotive … [Read more...]

Use this checklist to prepare your contact center metrics for buyer review. These KPIs help demonstrate operational effectiveness, customer experience, and scalability. Contact Volume & Traffic Data □ Total Contact Volume (Calls, Emails, Chats, Texts) □ Contact Volume by Hour / Day / Month □ Abandonment Rate (% of calls dropped before reaching agent) Performance & Efficiency Metric □ Average Handle Time (AHT) □ Average Speed of Answer (ASA) □ First Call Resolution (FCR) Rate □ Service Level (e.g., % answered within 30 seconds) □ Call Transfer Rate □ Complaint & Escalation Volume □ Conversion Rate (Sales / Actions per … [Read more...]

Privacy compliance used to be a back-office checkbox.Today, it’s a front-line value driver—or a deal-killer. With legislation like CCPA, CPRA, VCDPA, and other state-specific laws rolling out across the U.S., direct marketers are under more scrutiny than ever.And so are their buyers. We’re seeing strategic acquirers and private equity firms ask sharper questions around: 🔍 Consent management and data usage rights 🧾 Recordkeeping and opt-out processes 🔐 Data minimization and storage protocols ⚖️ Exposure to regulatory risk Translation: Compliant companies are commanding a premium. Non-compliant ones? They’re facing price reductions, legal holdbacks—or getting … [Read more...]

In customer-driven industries, your call or contact center isn’t just a service channel—it’s a strategic asset. During an M&A process, prospective buyers dig deep into customer service operations to understand how well the company handles demand, manages costs, and retains customers. Whether your team handles calls, emails, chats, or all three, the operating metrics from your contact center provide an essential lens into scalability, efficiency, and customer experience. Here’s a breakdown of the call center KPIs we typically review in due diligence—and what they reveal about a company’s health. Contact Volume & Traffic Data These are foundational metrics that help buyers … [Read more...]

The auto auction industry is in the midst of a transformation. A wave of strategic M&A is reshaping how vehicles are bought, sold, and remarketed—both in-person and online. From aggressive regional consolidation to digital-first platforms that simplify transactions, industry players are retooling to meet the demands of a faster, smarter, and more connected marketplace. Let’s break down the key deals and what they reveal about where the industry is headed. America’s Group: Scaling Fast with Strategic Acquisitions America’s Group, the parent of America’s Auto Auction and AXLE Funding, has been the most active consolidator in the auto remarketing sector. Following its … [Read more...]

M&A activity in the Digital Twin space is accelerating—and for good reason. 1. Scarcity of Scalable PlatformsThere are relatively few companies delivering enterprise-grade, scalable Digital Twin solutions. As demand rises, this scarcity is translating into premium valuations. 2. Technological Convergence Digital Twins are increasingly integrated with AI, IoT, and robotics. This convergence is driving strategic acquirers to pursue capabilities they cannot build in-house fast enough. 3. Exceptional Growth Rates With a projected CAGR of 39.8%, Digital Twin companies are among the fastest-growing in the U.S. economy. Investors and strategic buyers are taking note. At … [Read more...]

The Digital Twin market—valued at $12.9 billion in 2023—is forecasted to hit $259.3 billion by 2032, with a staggering 40% CAGR. As this transformational tech reshapes industries from aerospace to infrastructure, M&A momentum is accelerating. 📈 In our newest whitepaper, The Digital Twin Revolution and Its M&A Momentum, we explore: For business owners and investors, this moment presents both opportunity and urgency. High-growth companies in the Digital Twin ecosystem are commanding premium valuations—especially those bridging industry expertise with cutting-edge tech. 📄 Read our whitepaper about it. … [Read more...]

In direct marketing, postage is often the single largest line item after labor. Yet too many business owners treat it as a fixed cost. It’s not. Smart operators are unlocking real EBITDA lift through strategies like: 📦 Commingling – combining mail from multiple sources to qualify for deeper USPS discounts 📫 Drop shipping – injecting mail closer to its destination to cut transit time and cost 📬 Co-palletization (co-pal) – bundling with other marketers to reduce handling and optimize delivery Why it matters:The USPS offers substantial workshare discounts—sometimes $0.05 to $0.10 per piece—for marketers that presort and deliver mail closer to its final destination. That … [Read more...]

In today’s deal market, AI-enabled operations aren’t just a “nice to have”—they’re a catalyst for valuation premiums. Buyers are actively targeting companies that have embraced AI-powered virtual agents to streamline call center operations. These tools are improving customer experience and EBITDA—two levers that directly impact transaction multiples. Whether it’s handling routine inquiries, triaging complex issues, or capturing data in real time, virtual agents are transforming customer service into a competitive edge: ●  Faster resolution times ●  Always-on support ●  Lower headcount costs ●  Consistent, measurable CX If you're thinking about a sale … [Read more...]

Insurance is often viewed as a back-office item—an operational necessity that flies under the radar in a transaction. But in M&A due diligence, insurance policies provide a critical lens into a company’s risk profile, operational discipline, and governance standards. At Colonnade Advisors, we routinely request not only the policies themselves, but also the latest insurance applications, which can sometimes tell us more than the policies do. Below, we break down the key types of insurance we review during diligence, why they matter to buyers and investors, and the often-overlooked value of insurance applications. Core Insurance Policies Reviewed in M&A Diligence While health … [Read more...]

In the world of M&A, one of the most critical areas of financial due diligence is a target company’s debt and loan structure. For acquirers and investors, debt is not just a line on the balance sheet—it carries implications for risk, cash flow, and deal structure. That’s why, at Colonnade Advisors, we always request a full set of loan documents as part of our diligence process. These documents don’t just explain the obligations of the business—they tell a deeper story about how a company is financed, how tightly it operates, and where future risks may lie. The Full Set: Loan Documents We Always Request For each loan, we ask for a complete package of documentation. Here’s what we … [Read more...]

Call centers have long struggled with high turnover and low job satisfaction. At the heart of the problem? Repetitive, low-value tasks that drain human agents and inflate labor costs. Today, AI is changing the game. Leading customer engagement platforms are deploying intelligent automation to: The result? ✔️ Less burnout ✔️ Faster resolution times ✔️ Happier agents—and customers For business owners, this isn't just operational improvement—it's valuation enhancement. Companies leveraging AI to streamline call center operations are attracting premium attention from strategic buyers and private equity alike. If your company operates in the customer engagement … [Read more...]

When preparing your company for sale or investment, few things are scrutinized more carefully than your financials—and at the heart of that scrutiny lies your accounting policies. These policies govern how your company records, interprets, and presents its financial position. Well-documented, consistent, and compliant accounting policies aren’t just a sign of good governance—they are essential to preserving valuation, avoiding surprises during due diligence, and expediting a smooth transaction. At Colonnade Advisors, we’ve reviewed hundreds of financial packages through the lens of M&A. Below are the core accounting policies we expect to see in diligence—and why they … [Read more...]

In direct marketing, the difference between a 1% and 1.5% response rate isn’t just campaign success—it’s EBITDA. Take this example from Dark Sky Data:A national direct-to-consumer brand used improved targeting and mail timing to reduce duplicate mailings and increase conversion. The result? 📬 26% Reduction in CPA 📈 $3.3 million in incremental profit 💰 A meaningful uplift in enterprise value This wasn’t a creative refresh—it was operational and data discipline. And buyers are paying attention. In today’s M&A market, companies that can show repeatable, tech-enabled performance are commanding premium multiples. If your direct mail or DTC business has invested in better … [Read more...]

As M&A activity continues to accelerate in technology-enabled industries, buyers are becoming more sophisticated in how they assess operational risk—and one area under increasing scrutiny is IT governance. Beyond the hardware, software, and infrastructure diagrams lies a critical layer: the policies that govern how IT systems are used, protected, and maintained. At Colonnade Advisors, we believe that IT policies are not just a compliance formality—they’re an indicator of maturity, scalability, and long-term value. In diligence, the presence (or absence) of documented IT policies can be a red flag or a green light. What Are IT Policies? IT policies are formalized guidelines and … [Read more...]

In today’s deal environment, understanding a target company’s technology backbone is no longer optional—it’s mission critical. As digital operations expand, an IT infrastructure diagram has become a foundational tool in technical due diligence. It’s not just a visual map—it’s a risk indicator, a cost driver, and a strategic asset. So, what exactly goes into a robust IT infrastructure diagram? At Colonnade Advisors, we work with CIOs, CTOs, and technology diligence partners to break down the key components. Here’s what to look for—and why it matters. 1. Core Network Components: The Plumbing Behind Digital Operations A well-designed IT infrastructure diagram begins with the backbone … [Read more...]

The Registered Investment Advisor (RIA) sector is experiencing unprecedented growth, creating significant opportunities for firm owners considering a sale, expansion, or strategic partnership. Understanding the forces driving this momentum is essential for making informed decisions. Key Drivers of RIA Growth What This Means for RIA Owners If you’ve been thinking about selling, merging, or growing through acquisition, now might be the perfect time to explore your options. High valuations, strong demand, and an active buyer market create a compelling opportunity. At Colonnade Advisors, we specialize in guiding business owners through strategic transactions, ensuring alignment … [Read more...]

Mergers and acquisitions in the Registered Investment Advisor (RIA) sector reached historic levels in 2024, setting new benchmarks that could shape strategic decisions for firm owners. Unprecedented Deal Volume Private Equity's Dominant Role 📊 What This Means for RIA Owners If you're considering a sale, the current market presents a compelling opportunity: At Colonnade Advisors, we help business owners navigate strategic transactions, aligning opportunities with market trends and long-term goals. Let’s discuss how you can maximize value in today’s dynamic environment. 📩 Connect with us to explore your strategic … [Read more...]

The auto title and registration software industry is undergoing a major digital transformation, with electronic titling (e-titling) rapidly gaining traction. The industry is on pace to process one million electronic titles, a clear signal of growing adoption. Key Industry Update: New Jersey's introduction of an electronic loan and title system will streamline car loan processing, making transactions faster and more efficient for both consumers and lenders. What This Means for Business OwnersThe rising demand for digital solutions, combined with favorable regulatory changes, is driving unprecedented growth in the sector. For business owners in auto title and registration software, this … [Read more...]

The truck leasing industry is gaining momentum, with rising freight rates and surging demand for used trucks signaling a strong market. Business owners in the sector should take note: these trends could present an opportune moment to explore strategic options, including a sale or partnership. 💡 What This Means for Business Owners For truck leasing operators, these trends create a favorable environment for M&A. Investors and strategic buyers are actively seeking scalable, high-margin businesses to capitalize on industry tailwinds. If you’ve been considering a sale, now may be the right time to start preparing. We want to hear from you! What trends are you seeing in the … [Read more...]

The premium finance industry is experiencing substantial expansion, with projections indicating an increase from $46.108 billion in 2023 to $51.437 billion in 2024, reflecting an 11.5% CAGR. This upward trajectory is expected to continue, reaching $79.72 billion by 2028, maintaining a steady CAGR of 11.6%. Several factors contribute to this growth, including the rising number of high-net-worth individuals, expansion in luxury goods and services sectors, increasing insurance premiums, and heightened interest in asset protection and real estate investments. Additionally, advancements in digital platforms, innovative financing solutions, improved risk assessment, and customer service … [Read more...]

As we set our sights on 2025, the automotive industry is set to navigate significant shifts, with Cox Automotive highlighting five transformative trends poised to shape the market. First, new vehicle sales are forecasted to reach 15.6 million units, a 3% increase from 2024, reflecting steady recovery in consumer demand. This growth is underpinned by improving inventory levels and stabilizing supply chains. Seasoned investors will note that this resurgence signals renewed market confidence and offers opportunities for investment in both production and retail infrastructure. Electric vehicles (EVs) are expected to account for 10% of the market by 2025, driven by advancements in charging … [Read more...]

The automotive sector is evolving, with dealers turning to technology-driven acquisition strategies to tackle inventory challenges and stay competitive. Tools like AI and predictive analytics are revolutionizing inventory management and supply chains, enabling smarter, data-driven decisions. In fact, 76% of dealerships report AI positively impacts sales and operations, and 55% have seen revenue grow by over 20% with AI integration. This shift isn’t just about survival—it’s about growth and differentiation. With 81% of dealerships planning to increase AI budgets by 2025, businesses that innovate are positioning themselves for higher valuations and sustained success. For investors, these … [Read more...]

 📈 Key Trends from Q3 2024: What It Means for Administrators and Agencies:As the market evolves, F&I administrators and agencies must continue to differentiate themselves through product innovation, operational efficiency, and alignment with dealership priorities. Consolidation trends also point to the need for strong partnerships and scalable platforms that can weather industry shifts. The data from Q3 paints a clear picture: now is the time to invest in capabilities that meet the changing demands of both dealerships and consumers. Whether it’s through digital tools, streamlined processes, or new product designs, administrators and agencies have an opportunity to drive … [Read more...]

The auto finance market is at a critical juncture, with affordability concerns, negative equity, and rising delinquencies reshaping consumer and lender dynamics. For business owners in the auto finance and dealership sectors, understanding these shifts is more crucial than ever—especially if you’re considering a sale in 2024. 🔑 Key Trends to Watch: What Does This Mean for Business Owners?Affordability pressures and rising risks create challenges—but also opportunities for innovation and strategic positioning. Lenders, dealerships, and service providers must adapt to maintain stability and consumer confidence. 💡 Considering a Sale in 2025?Now might be the ideal time to explore your … [Read more...]

Several leading U.S. equipment manufacturers are experiencing rising warranty costs, but are reducing warranty accruals on their financials (less set aside for future claims). However, companies like Paccar report growth in amortized revenue from extended warranties, while Trane highlights increased sales of new service contracts. These shifts indicate a growing reliance on extended warranties and service plans to manage costs and improve customer satisfaction. This strategic pivot by manufacturers signals both challenges and opportunities. As warranty expenses climb, manufacturers increasingly turn to extended warranties and service plans to manage costs and enhance customer … [Read more...]

Cox Automotive's latest forecast reveals U.S. auto sales are expected to grow by 2.2% in 2024, reaching 15.8 million units—a clear sign of sustained market momentum. With used-vehicle sales projected to rise another 1% in 2025 (to 37.8 million units), the automotive sector continues to showcase resilience and opportunity. What’s driving this growth? Increased vehicle availability and strategic discounting have reignited consumer demand, with December 2024 sales alone forecasted at 1.45 million units and a SAAR of 16.5 million units. These positive indicators point to ongoing strength in both new and used vehicle markets. What Does This Mean for Business Owners? For entrepreneurs in … [Read more...]

The EV market is undergoing transformative changes that promise to make electric vehicles more accessible to a broader consumer base. GM Energy’s introduction of the PowerBank, a home energy storage solution, showcases how integrating EVs into residential energy systems can enhance affordability. By offering modular energy storage that pairs with vehicle-to-home technology, PowerBank enables households to offset peak electricity costs and use stored energy during outages, further lowering the overall cost of EV ownership. This innovation highlights the synergy between renewable energy, cost efficiency, and energy resilience. Simultaneously, the declining prices of used EVs are reducing … [Read more...]

On October 30, Siemens announced its acquisition of Altair Engineering for $10 billion, the second-largest deal in the Digital Twin and industrial simulation market. With valuation multiples of 14x revenue and 31x Adjusted EBITDA, this landmark transaction reinforces the robust value potential in this transformative space as industry-specific knowledge combines with technological advancements, solving complex everyday solutions. The $113 per share cash offer represents a 19% premium to Altair’s unaffected share price. The deal is expected to yield $150 million in annual cost synergies by the second year and $500 million in revenue synergies by year three, potentially exceeding $1 billion … [Read more...]

The automotive dealership industry is undergoing a significant transformation as technology and AI redefine operations. Supply chain disruptions and fluctuating consumer demand have pushed dealerships to adopt technology-driven tools for smarter inventory management. According to Auto Remarketing, 71% of dealers are leveraging advanced technologies to optimize inventory. These platforms analyze real-time market data and customer trends, allowing dealerships to stock vehicles that match local demand, minimize overstock, and improve profitability. The ability to make data-driven purchasing decisions has become crucial for dealerships to navigate today’s volatile market landscape. AI is also … [Read more...]

Third-party cookies are tracking tools used by companies to monitor user behavior across websites for targeted advertising. Google, which controls about 65% of the global browser market, recently announced it would keep third-party cookies in Chrome, while allowing consumers to more easily opt out, delaying their complete phase-out until 2025. This shift reflects growing privacy concerns and a broader industry move toward first-party data collection via contextual targeting and pseudonymization, and privacy-compliant marketing strategies. As Google extends the lifespan of third-party cookies, marketers and agencies find themselves at a critical crossroad. A recent Lotame survey revealed … [Read more...]

The Registered Investment Advisor (RIA) sector has seen a significant uptick in M&A activity with 2023 recording one of the highest levels of M&A: 39 transactions in October 2024, breaking the previous record of 31 in a single month. Approximately 250 transactions have occurred in the last year with total deal values exceeding $20 billion. This surge is attributed to both a favorable interest rate environment and a strong market for financial advisors seeking to scale their operations. As firms aim to enhance their service offerings and expand their market share, strategic acquisitions are becoming a critical pathway for growth, allowing them to integrate new technologies and broaden … [Read more...]

Insights from the 2024 Deloitte-NASCIO Cybersecurity Study reveal that nearly 80% of state CIOs now regard cybersecurity as a top priority while National University studies indicate that 43% of cyber attacks target small businesses, making it clear that vulnerabilities affect organizations of all sizes. In the public sector, the Deloitte study underscores that 64% of state governments experienced a cyber incident in the past year, a stark reminder of persistent threats that can have far-reaching consequences—not just for state agencies but also for businesses that engage with them. Additionally, 70% of organizations report facing significant challenges in securing adequate funding for … [Read more...]

As we head into 2025, the global advertising landscape is set for significant growth—expected to jump by 10.5%, driven by: 🔑 At Colonnade Advisors, we are experts in guiding businesses through M&A and capital raising within the marketing space. With over two decades of experience, we help maximize value for business owners. … [Read more...]

The subprime auto loan market is facing significant challenges that reflect broader economic pressures. As inflation continues to rise and interest rates remain elevated, borrowers are experiencing increasing financial strain. Rising delinquency rates and high loan-to-value (LTV) ratios suggest that many consumers are overextending themselves financially. Additionally, a decline in new subprime loan originations indicates that lenders are tightening their credit standards in response to these risks. Delinquency rates surged to 8.5% in August, compared to 8.2% in July and 7.6% a year earlier. This upward trajectory indicates that borrowers are facing escalating financial pressures due to … [Read more...]

Consumers are facing a troubling rise in credit delinquencies alongside a slowdown in new lending activity. Factors such as inflation and increased living costs are straining household budgets, with only 44% of Americans able to cover an unexpected $1,000 expense without relying on credit, and 27% lacking any emergency savings. As new loans and credit accounts have declined across all products, the financial strain on consumers is becoming increasingly evident. The struggle to meet payment obligations has led to a 23% increase in car repossessions, underscoring the significant economic pressures affecting repayment capabilities. The latest AFSA C3 Index reveals mixed performance in the … [Read more...]

The debt collection industry is on the brink of a transformative shift, where adapting to digital innovation and heightened regulatory demands is no longer optional—it's essential for survival. One major trend is the rise of digital collection strategies, as agencies increasingly adopt AI and automation tools to streamline operations and improve customer engagement. These technologies not only enhance efficiency but also cater to a growing preference for digital communication among consumers. Additionally, regulatory scrutiny has intensified, with an increased focus on compliance and transparency, making it essential for collection agencies to maintain robust compliance frameworks to remain … [Read more...]

At the ILFA 2024 conference, a panel of judges emphasized that mandatory legal finance disclosure is unnecessary and could harm litigation efficiency. Judges highlighted that such disclosure rarely addresses conflicts of interest and disrupts case strategy. They advocated for in-camera reviews when needed, ensuring fair legal proceedings without hindering business claims. This dialogue reinforces the role of litigation finance in leveling the playing field in complex cases, particularly without forcing unnecessary disclosure. … [Read more...]

A recent study by WarrCloud shows the cost of processing new auto warranty claims increased by 28% since 2020. Processing a single claim now takes 47% more time, with dealerships seeing a 17% rise in claim volume. Factors like advanced vehicle technology and a rise in vehicle recalls are driving up these costs. Additionally, EV warranty work is also expected to grow in service departments, accelerating the need for warranty administrators to create new strategies to deal with more complex warranty work and claims, according to an article by Automotive News. In response to these factors, many dealerships are outsourcing claim processing to manage the growing expense and complexity, with … [Read more...]

Jobber’s 2024 Q2 Home Service Economic Report highlights that the Home Service industry experienced modest growth, primarily driven by an increase in average invoice size. The industry is expected to grow in the second half of 2024 as inflation cools and the Fed announced a rate cut of 50 basis points. The HVAC and plumbing segments are expected to continue to grow in the coming years due to the aging of US housing stock. Inflation easing, decreased interest rates, and aging housing stock will also drive the growth of the remodeling segment of the Home Services industry. … [Read more...]

Howden has launched the first Carbon Credits Warranty and Indemnity insurance policy in the warranty industry, covering the sale of carbon credits for a reforestation project in Ghana by Mere Plantations. This policy enhances trust in carbon credits, addressing concerns around their quality and governance, and encourages more investments in the carbon market. By ensuring the integrity of these credits, the policy allows Mere Plantations to sell them at a premium, setting a new benchmark for the voluntary carbon market. Howden has already marked their first sale of a policy, that being to Uniserve.  With governments increasing legislation around carbon emissions, per the US Office of … [Read more...]

Over the last three quarters, new vehicle loans have steadily increased, showing signs of a recovering market, while used vehicle loans have experienced consistent declines over the past two years. As new vehicles require larger loans and used vehicle financing tightens, this presents a key opportunity for dealerships to sell Vehicle Service Contracts (VSCs). Offering VSCs can ease customer concerns and provide added protection, especially in an inflationary environment with rising repair costs. … [Read more...]

The housing and mortgage markets, continue to face significant challenges. As of September, average mortgage rates remain high at 5.47% for 15-year loans and 6.35% for 30-year loans. Although these rates have decreased from over 7.00% in late 2023, they still pose affordability issues for prospective homebuyers. This high-rate environment, combined with ongoing inflationary pressures, has resulted in a cooling housing market. New and existing home sales in June were the lowest since July 2011, with total sales down 5.4% year-over-year. Inventory has increased to 1.32 million units but remains below the pre-pandemic average of 1.8 million units. In Q2 2024, the slight decline in the … [Read more...]

There are a lot of acronyms in insurance. Understanding the distinctions between IMOs, FMOs, NMOs, MGAs, and GAs is essential for navigating the industry effectively. IMOs (Independent Marketing Organizations) focus on recruiting agents and providing comprehensive resources, often with exclusive contracts from carriers and typically emphasize life insurance and annuities. FMOs (Field Marketing Organizations) take a localized approach, offering tailored training and marketing support to meet regional needs, and often specialize in health insurance products. NMOs (National Marketing Organizations) operate nationally, bridging carriers and agents by providing a wide range of products, … [Read more...]

Cashless payments in North America are set to expand significantly, with a 7% annual growth through 2028. Business-to-business non-cash transactions are projected to grow from $56.2 billion to $75.5 billion over this period. This growth is heavily supported by advancements in real-time payments systems such as the Federal Reserve's FedNow and The Clearing House’s RTP network, which enable faster, more secure transactions. Retailers are increasingly seeing a shift in customer preference toward faster and more secure payment methods, as convenience becomes a primary factor. With a focus on convenience being a factor for customer preference, digital and contactless payments, particularly … [Read more...]

Klarna is taking its lead generation strategy to the next level by harnessing generative AI. By integrating tools like Midjourney and DALL-E, Klarna has slashed its marketing costs by $10 million annually while boosting the effectiveness and frequency of its campaigns. 🎯 These AI-driven solutions enable rapid image creation, tailored to specific events, resulting in reduced production costs and higher engagement. But it doesn't stop there—Klarna is also leveraging AI across marketing and customer service, streamlining operations and improving conversion rates. This powerful combination of AI and leadgen is shaping a more cost-efficient and high-conversion future for the company. … [Read more...]

Private credit has rapidly evolved into one of the fastest-growing sectors in finance, expanding nearly tenfold in the past 15 years to reach almost $2 trillion by the end of 2023. Although this represents a small fraction of the broader fixed-income market, private financing continues to outpace traditional banking and public alternatives in terms of performance. The key drivers? Regulatory challenges faced by banks, the pullback from leveraged lending, and the expansion of private equity. As banks encounter increased competition from nonbank lenders, opportunities for collaboration are emerging. Banks have the potential to adapt by partnering with asset managers and insurers, focusing … [Read more...]

With electric vehicle (EV) demand slowing, Toyota is ramping up its focus on hybrid models. The automaker is now considering hybrids for its entire lineup, moving away from traditional gasoline-powered cars while sticking to its multi-pathway strategy of hybrids, EVs, and hydrogen fuel-cell vehicles. This pivot aims to leverage growing hybrid demand, cut regulatory costs, and allow more time to develop future green technologies. Toyota's approach could set the stage for a balanced transition in the auto industry, aligning with consumer preferences and regulatory pressures. What do you think—are hybrids the bridge we need for sustainable mobility? 📚 Sources: Reuters, EPA … [Read more...]

Great news for the reinsurance industry 🌟 Moody's has just upgraded its outlook for global reinsurers from stable to positive. The shift is driven by stronger commercial finance fundamentals—higher pricing, stricter underwriting policies, and healthier investment income. In response to recent crises and substantial losses, reinsurers have raised rates and narrowed coverage, resulting in greater financial stability. 📈 While price hikes are expected to slow, the industry’s solid balance sheets and favorable property reinsurance pricing are paving the way for continued growth in commercial finance. This outlook upgrade signals a promising future for the sector, providing opportunities for … [Read more...]

The Fix & Flip sector, part of the Business Purpose Lending industry, is experiencing significant M&A activity driven by: 1️⃣ 𝗔𝘁𝘁𝗿𝗮𝗰𝘁𝗶𝘃𝗲 𝗥𝗲𝘁𝘂𝗿𝗻𝘀: Short-term, high-yield loans and low loss profiles make this sector appealing for investors. 2️⃣ 𝗠𝗮𝗿𝗸𝗲𝘁 𝗖𝗼𝗻𝘀𝗼𝗹𝗶𝗱𝗮𝘁𝗶𝗼𝗻: Larger players are acquiring smaller lenders to expand their operations and take advantage of growing demand. 3️⃣ 𝗔𝗴𝗶𝗻𝗴 𝗛𝗼𝘂𝘀𝗶𝗻𝗴 𝗦𝘁𝗼𝗰𝗸: With the median age of U.S. homes rising, there's a strong demand for renovated properties, fueling investment in the Fix & Flip space. … [Read more...]

The U.S. commercial insurance industry experienced softer market conditions in the second quarter of 2024. The drop in premiums from Q1 to Q2 highlights the impact of increased competition in the commercial insurance market. According to the CIAB Quarterly Survey, the average premium rate across all lines fell by 2.1%, with some lines experiencing even more significant reductions. The average premium increase slowed to 5.2% in Q2 2024, which is the first time premium growth fell below 6.0% in 5 years. The $50+ billion insurance premium finance industry is closely correlated to the commercial insurance market. Given the decrease in average premium growth, select industry players in the … [Read more...]

The Lead Generation industry is booming across multiple sectors. Here are some top segments fueling this growth: 🏡 Home Improvement & Maintenance: Homes are getting older. 🚗 Automotive Services: Aged vehicles and expanded online car buying drive demand for repair and maintenance leads. 💳 Financial Services: Fintech and digital banking intensify the competition for mortgage, loan, and insurance leads. 🩺 Healthcare: Mental health and telemedicine are pushing the need for healthcare leads as online services rise. 🛒 Retail & E-commerce: The continued growth of online shopping is creating demand for personalized leads in e-commerce. Learn more about these sectors and … [Read more...]

AI is revolutionizing lead generation, making it more efficient, data-driven, and personalized. Here’s how AI is reshaping the industry: AI’s transformative power is leading to more M&A activity as companies aim to leverage these tools. … [Read more...]

A recent report from the CFPB reveals that Americans are paying millions in cash-back fees at retailers like Dollar General and Kroger just to access their own money. These fees are hitting hardest in communities with limited banking options, compounding consumer finance challenges and deepening economic inequality. As cash access points dwindle due to bank mergers and branch closures, the CFPB is calling for increased scrutiny on how these fees impact everyday consumers. This report raises important questions about fairness in consumer finance—how will we ensure financial inclusion in an evolving banking landscape? … [Read more...]

The unbundling of core banking systems, where traditional platforms are being replaced by specialized solutions, has led to expanded growth opportunities within the industry. The shift enables financial institutions to select and integrate best-of-breed technologies, enhancing flexibility and innovation while addressing specific operational needs and customer demands leading to more tailored and effective banking. By moving away from traditional systems, financial institutions can more quickly adopt and implement cutting-edge technologies and innovations internally or through acquisitions. As banks and fintech companies embrace this modular approach, they stand to benefit from increased … [Read more...]

The July 2024 Dealertrack CAI report highlights a significant decline in credit availability within the auto industry, impacting dealership operations and customer financing options. The All-Loans index continued to decrease to 92.9 in July down 1.5% on the year. This reduction is attributed to tightening credit standards and increased borrowing costs, which are making it more challenging for consumers to secure auto loans. As a result, dealerships may face slower sales and pressure to adjust their financing strategies. Tightening of credit availability underscores the need for industry stakeholders to navigate these changes by exploring alternative financing solutions and adapting to … [Read more...]

Federal Reserve Chair Jerome Powell stated in his August press conference that it is time for the central bank to consider cutting interest rates, marking a significant shift in policy. The move is driven by concerns over slowing economic growth and global trade tensions, particularly with China. Powell emphasized that while the U.S. economy remains strong, these external pressures necessitate a proactive approach to maintain stability. This potential rate cut would be the first since the 2008 financial crisis, reflecting a cautious outlook on the future economic landscape. … [Read more...]

A public survey of automotive dealer sentiment for Q2  2024 reveals a stable yet cautious outlook among auto dealers. Despite concerns stemming from a weaker-than-expected tax refund season and ongoing political and economic uncertainties, some positive indicators emerge, such as a slight increase in profit perceptions and improvements in customer traffic. However, rising costs and persistent price pressures pose challenges to dealers, alongside a mixed outlook for new and used vehicle sales. The sentiment regarding electric vehicle sales continues to decline, reflecting worsening perceptions in that segment. Concerns about the political climate, particularly as the U.S. presidential … [Read more...]

Access to auto loans continues to decline as lenders tighten credit standards due to economic uncertainty and rising delinquencies. According to the New York Fed, the denial rate for auto loans reached 14.2% in June 2023, the highest since 2017. Higher interest rates, inflation, and increased risk aversion among lenders are contributing to the reduced availability of credit, particularly affecting subprime borrowers. As a result, fewer consumers are able to secure financing for vehicle purchases, potentially impacting the auto market and the broader economy. … [Read more...]

Inventory of used construction equipment has rebounded to pre-pandemic levels. More equipment has become available as projects are completed, leading to a surplus in the market, amongst other factors, according to Equipment Finance News. The rise in inventory indicates a recovery in the construction sector, reflecting renewed activity and investment in infrastructure projects. Despite concerns about inflation affecting equipment prices, the availability of used machinery is seen as a positive sign for the industry's overall health and growth prospects moving forward. … [Read more...]

Global merger and acquisition deals reached $1.5 trillion in the first half of 2024, a 22% increase from the previous year, driven by a surge in US takeovers and large deals over $10 billion. Despite this increase in value, the total number of deals fell to a four-year low. The US led the activity with $796 billion in deals, while Europe saw a 43% increase and Asia-Pacific declined by 21%. Energy sector deals rose significantly, and financial services saw a 60% increase in deal volumes. Large firms are increasingly pursuing long-term plans amidst a stabilizing macroeconomic environment. … [Read more...]

Personal loans in the U.S. have reached historic highs in terms of interest rates, balances, and the number of loans. Over 23 million Americans currently hold unsecured personal loans, at an average balance of nearly $12,000. The average personal loan interest rate rose to 12.35% in Q1 2024, nearly 3% higher than three years ago. After a dip during the early COVID-19 pandemic, personal loan debt reached over $230 billion by June 2023, a 46% increase from March 2020 and 59% higher than June 2021, which has since come down to just under $150 billion by March 2024. … [Read more...]

In April 2024, wholesale prices for used vehicles dropped compared to the previous month and the same period last year. The Manheim Used Vehicle Value Index fell by 14.0% year-over-year to 198.4. Depreciation rates were higher than usual, with vehicles losing value faster than in past years. Luxury vehicles saw the smallest decline (12.9%), while compact cars had the most significant drop (17.6%) in prices compared to last year. EV values fell more sharply (17.5%) than non-EVs (13.1%) on a seasonally adjusted basis. Retail sales of used vehicles were estimated to be 4% lower than in March but 9% higher than the same period last year. Despite fewer sales, the average listing price for used … [Read more...]

In April, wholesale used-vehicle prices saw a decline compared to March, marked by a 14.0% drop in the Manheim Used Vehicle Value Index (MUVVI) from the previous year. This decrease, magnified by seasonal adjustments, reflected a broader trend of falling prices, with major market segments experiencing year-over-year declines. Retail used-vehicle sales dipped by 4% from March but showed a 9% increase compared to the previous year, accompanied by a 2% rise in average retail listing prices. Concurrently, consumer confidence took a hit in April, with declines across various indices, affecting perceptions of buying conditions for vehicles amidst rising gas prices. These shifts underscored a … [Read more...]

The private credit market is undergoing rapid growth, prompting closer scrutiny from the International Monetary Fund (IMF), according to a report by Pensions & Investments. Private credit, which includes loans to non-public companies, has expanded significantly in recent years, raising concerns about potential risks. The IMF warns that this market's lack of transparency and oversight could pose systemic risks to the financial system. Despite its potential benefits, such as providing capital to small and medium-sized enterprises, the IMF emphasizes better regulation and supervision to mitigate risks. This call for increased vigilance underscores the importance of monitoring the private … [Read more...]

The auto industry was responsible for 17% of global microchip purchases in 2023, up 3% year-over-year, according to World Semiconductor Trade Statistics (WSTS). This puts it ahead of consumer electronics and industrial sectors, behind only communications (32%) and PC/computer (25%). As vehicles become more complex, the need for chips has grown, with today’s cars containing between 1,000 and 3,500 microchips, according to the Semiconductor Industry Association. Chip production delays continue to challenge the auto market despite the rising demand. The semiconductor shortage of the past few years has eased significantly, but many auto manufacturers still need to prioritize where chips are … [Read more...]

The strong seller’s market in real estate continues to drive low sales of home warranties included as part of a real estate transaction, creating a significant opportunity for direct-to-consumer (DTC) home warranty companies.  In a buyer’s market, home warranties are often purchased by the seller of a home and offered to the buyer as part of a real estate transaction. The strong seller’s market since 2021 drove a significant decline in home warranties purchased by sellers. The percentage of homes sold with a home warranty fell from 28% in 2019 to 20% since 2021.  The reduction in attached home warranties created an opportunity for DTC companies to market to recent home buyers who … [Read more...]

Retail used-vehicle sales rose about 14% month-over-month in February and about 11% year-over-year for the strongest volume in nearly a year, highlighting a notable uptick in consumer demand. With tax season in full swing, customers are flocking to dealerships nationwide for reliable and affordable pre-owned vehicles. Dealerships across the United States are experiencing increased foot traffic and sales activity as tax refunds stimulate purchasing power. This trend is particularly evident in the pre-owned vehicle market, where customers are drawn to affordable options and reliable transportation. Analysts predict this momentum will persist throughout the tax season, driving robust sales for … [Read more...]

21% of auto finance leaders cite reduced fraud as the top benefit of automation in the lending process, followed by increased speed (19%), improved accuracy (18%), and lower costs (18%), according to an online survey of over 2,500 auto finance professionals by Informed.IQ. Despite these benefits, 44% of respondents have yet to incorporate AI into their workflows due to a lack of buy-in from the C-suite. Budget constraints and lack of knowledge or experience implementing automation into the lending process were among other top concerns. “Automation is not just a convenience; it’s a strategic imperative in today’s fast-paced environment,” Informed.IQ stated in a news release. “By … [Read more...]

As used vehicle prices continue to fall and net charge-offs increase, access to credit has declined.  According to a recent report by Cox Automotive, the Dealertrack Credit Availability Index fell to 93.0 in January down 3% year over year.  While credit access declined across all lenders, banks and credit unions saw the largest decrease, falling by 5.7% and 7.4% respectively. … [Read more...]

As used vehicle prices continue to fall and net charge-offs increase, access to credit has declined.  According to a recent report by Cox Automotive, the Dealertrack Credit Availability Index fell to 93.0 in January down 3% year over year.  While credit access declined across all lenders, banks and credit unions saw the largest decrease, falling by 5.7% and 7.4% respectively. … [Read more...]

Despite financial institutions' clear desire to harness the capabilities of generative AI technologies, less than 1 in 10 banks have successfully outlined a viable roadmap for their implementation. This disconnect underscores the challenges banks face in navigating the complexities of adopting and integrating generative AI into their operations. Key obstacles hindering the effective adoption of generative AI in banks include data privacy concerns, regulatory compliance, and the intricate nature of AI implementation. These challenges necessitate careful consideration and strategic planning to ensure that the benefits of generative AI are realized while mitigating potential risks. The … [Read more...]

Fraud is a growing concern for auto dealerships, with one fraud incident on average per year. Despite this, only 21% of dealerships verify identification properly. Many rely on photocopying driver's licenses (64%) rather than utilizing document authentication methods (33%). Additionally, the rise of online retailing exacerbates fraud risks. The financial impact is significant, with 59% of lenders requiring dealerships to repurchase loans in proven fraud cases. Sources: “Auto Lending Fraud Trends Report”, Point Predictive, 2023; eLend Solutions #InvestmentBanking #MiddleMarket #Finance #MergersAndAcquisitions #PrivateEquity #CapitalRaising #Auto #AutoDealership #CarSales #Fraud … [Read more...]

Auto Lenders are at risk for $8.1 billion in fraud annually because loans are financed based on applications containing misrepresentations. Identity theft is cited as the cause of 20% of fraud. Auto dealers are on the frontline of this problem and can pay the price. When auto lenders determine that the dealer could have prevented the fraud, 59% of lenders require that the dealers “buyback” the loan.  Sources: “Auto Lending Fraud Trends Report”, Point Predictive, 2023 #InvestmentBanking #MiddleMarket #Finance #MergersAndAcquisitions #PrivateEquity #CapitalRaising #Auto #AutoDealership #CarSales #Fraud #IdentityFraud … [Read more...]