M&A activity snapshot
Farm equipment retail is consolidating into fewer, larger ownership groups. After a record 214 big dealers (five or more ag locations) in 2022, the industry now has 199, the fourth straight annual decline. The store base did not shrink much: big dealers own 2,774 ag stores in 2026, down from 2,781 in 2025. Fewer owners now control roughly the same number of rooftops.
Scale is concentrated at the top. The 100 largest dealer groups operate 2,001 ag stores, nearly one-third of all North American ag equipment rooftops, with an estimated $48.4 billion in annual revenue. For context, Deere sells through approximately 2,050 independent dealer locations in the U.S. and Canada, about 1,600 of which sell agricultural equipment.
Recent deals follow the same pattern: an adjacent same-brand group absorbs a family-owned store network. In July 2026, RDO Equipment Co. agreed to acquire True North Equipment's John Deere agriculture locations in North Dakota and Minnesota, subject to final approval by John Deere.
Who is buying
Same-brand dealer groups. These are the main buyers, and the OEM decides how far each group can grow. Deere's network has consolidated the most: Deere had 96 big dealers in 2020 and 77 in 2026. The top Deere groups include United Ag & Turf, Ag-Pro Companies, Papé Machinery and RDO Equipment, and Titan Machinery is the top Case IH dealer.
Public consolidators. Titan Machinery has completed over 60 acquisitions since 2003 and runs 90 U.S. stores, 39 in Europe and 15 in Australia. Its 10-K expects consolidation to continue because of cyclicality, rising capital requirements, equipment complexity and the lack of succession alternatives for many current owners. Its largest recent deal was J.J. O'Connor & Sons in Australia: 15 Case IH dealership locations for $66.5 million in cash.
Newly formed ownership groups. Outside capital can enter, but only with OEM approval. As of 2020, Tellus Equipment, a company formed specifically to become an authorized John Deere dealer, acquired all 21 Ag-Pro Texas locations.
Manufacturers reshaping networks. In May 2026, CNH combined management of its New Holland and Case IH dealer networks, and industry observers asked whether that signals pressure toward further dealer consolidation.
What buyers look for
Parts and service profit. In Titan's fiscal 2026, gross margin was 7.3% on equipment, 30.9% on parts and 61.5% on service. By Axia arithmetic from that 10-K, parts and service produced about 63% of gross profit ((132,515 + 109,459) / 382,556, in $ thousands). Buyers pay for the aftermarket, not for tractor sales.
Absorption. Absorption is the percentage of a dealer's operating expense covered by gross profit from parts, service and rental. Titan reported 75.2% company-wide for fiscal 2026. Ask which formula a buyer is using: one consultant shows the same dealer at 68.2% under one formula and 81.7% under another.
Inventory quality and floorplan exposure. Aged whole goods tie up capital and carry interest. Titan cut floorplan interest expense 30.5% in fiscal 2026, primarily due to lower interest-bearing inventory levels. In a late-2025 survey, a net 42% of dealers said new equipment inventory was too high and a net 27% said used inventory was too high. Buyers will mark aged units down to market before agreeing on price.
Repair access after the Deere settlement. The FTC settlement requires Deere, for 10 years, to give farmers and independent repair providers the same repair resources, including software, that it provides authorized dealers. Service revenue built on technician depth and response time holds its value better than revenue that depends on exclusive diagnostic tools.
What makes a strong company
A dealership that attracts several qualified bidders typically shows:
- Absorption at or above the North American average. One consultant puts the ideal at 85% or higher and the average at around 71%.
- A clean OEM relationship: current on dealer standards, with no open performance notices. The CNH agreements Titan describes set standards on inventory levels, personnel training, working capital and a maximum adjusted debt to tangible net worth ratio.
- Used inventory aged and marked honestly, with no units carried above resale value.
- A service department with enough technicians to grow. Dealers expect aftermarket growth, with 62.1% forecasting service revenue up 2% or more.
- Stores that fill a gap in a neighboring same-brand group's territory, which gives that group a reason to pay for the deal.
Valuation and deal structure
No reliable published transaction multiple exists for farm equipment dealerships. NAEDA's CFO, who has completed more than 500 dealer valuations, says there is very little market data for farm equipment dealerships. In the method he describes, intangible ("blue sky") value is an average EBITDA times a negotiated multiple, added to the value of tangible assets. Axia found no source that reports what that multiple typically is.
Public filings rarely disclose enough to derive a multiple. Titan disclosed $66.5 million in cash for O'Connors' 15 locations but not the target's EBITDA. Much of a dealer's purchase price is inventory and receivables, so a seller should expect a separate negotiation over how each class of inventory is valued at closing.
The OEM shapes every deal. Dealers have to get manufacturer approval to sell and manufacturer approval for the buyer, and CNH can terminate a dealer agreement if a change in control happens without its consent. Bring the OEM in early, or a signed letter of intent can stall.
Outlook
Expect more consolidation into 2027, with prices driven by the downturn. U.S. tractor sales fell 10% in 2025 and combine sales fell 36%. Through August 2026, farm tractor units were down 12.4% and combines down 9.1% year to date. Deere expects U.S. and Canada large-ag industry sales to fall another 15 to 20% in fiscal 2026.
Some leading indicators are turning. In Titan's second quarter of fiscal 2027, same-store sales fell 8.4%, and its CEO said calendar year 2026 could be the bottom of this cycle. Owners selling into a trough get paid on the aftermarket. Dealers that can show stable parts and service profit through 2025-2026 will draw the most interest from same-brand groups that are still buying.
Weighing a sale of your dealership? Run the valuation tool for a market-data starting point, or go back to the Agriculture & Agribusiness M&A overview. See also: how independent sponsors build deal flow in a single vertical.