DCG launches AI data-mining software for dealership valuations
Summary
“With Jump IQ, Dave Cantin Group owns accurate, reliable real-time data that directly improves our ability to secure successful M&A outcomes for our clients.” DCG said it began developing the software in late 2022 and has been testing it with industry stakeholders for the past six months. “More than half of the deals done in retail automotive are initiated by a buyer looking for a targeted acquisition,” Cantin said. “With Jump IQ, when we sit down with a buy-side client, we can model and pull up information with respect to any dealership on a big screen and strategically identify top targets based on geography, brand, revenue, performance or any number of other criteria. “When we use that data to engage a target dealership’s principal to gauge interest in a possible divestiture, we’re informed and can engage with the assurance that our buyer’s interest is truly qualified.” DCG is introducing a fee-for-service advisory model in conjunction with the rollout of Jump IQ that will allow dealership groups to use Jump IQ for strategic platform management. Data outcomes have been tested against actuals from cooperating dealers, with Jump IQ testing within a 1-9% variance across all key financials and KPIs, DCG said, adding those outcomes will continue to improve as use of Jump IQ increases.