Auctions, Advisory, and Operational Excellence

News
5 min read

The automotive industry continues to evolve at a remarkable pace. Every operator, from independent dealerships to large retail groups, is challenged to run leaner, think strategically, and protect enterprise value. The same holds true in the wholesale auction sector, where efficiency, transparency, data discipline, and optimizing use of technology now determine who leads and who follows.

For Mach10 Automotive, these changes reaffirm the importance of one principle: performing consistently is never accidental. It is built through structure, insight, and execution. That belief has guided every engagement we have undertaken – and it will also be a constant in our Mergers & Acquisitions services geared towards Wholesale Auctions.

A Division Built on Real Ownership Experience

Our expansion into wholesale auction advisory is not a fluke. It is strategic, intentional and built on decades of operational experience and firsthand ownership. George Pero, our President and CEO, founded Auctions in Motion – “AIM”. George launched AIM as a mobile auction platform, scaled it into a network of brick-and-mortar locations, and ultimately sold it to America’s Auto Auction Group (formerly AAAG/XLerate). After the sale, George played a key leadership role on AAAG Mergers & Acquisitions’ team.

This unique background gives George and our team a unique and valuable inside-out understanding of the auction business – what drives profitability, how operational bottlenecks form, and why some auctions command higher valuations than others. It also empowers us to have the insight and experience to advise auction owners and operators who face the same challenges George once did: balancing throughput with control, expansion with discipline, and value creation with risk.

The Market Reality: Scale Requires Structure

Wholesale auctions remain essential to the flow of inventory and liquidity across the automotive ecosystem. Yet the landscape is shifting fast.

According to Cox Automotive’s March 2025 Manheim Used Vehicle Value Index, wholesale prices declined modestly by 0.2% year-over-year, even as retail used-vehicle sales jumped nearly 20% month-over-month. The data tells a simple story: retail absorption remains strong, but wholesale competition is tightening.

Behind those numbers lies a deeper truth: many auctions operate below potential because they rely on instinct, legacy systems, or inconsistent data. Without a disciplined framework for performance tracking, process control, and reporting, even well-run operations can bleed profitability over time.

At Mach10, our work begins with the fundamentals – identifying the small inefficiencies that quietly compound into large losses. Whether you’re planning succession, optimizing margins, or preparing for sale, the path to value begins with structure and discipline.

Operational Excellence: The Core of Sustained Profitability

In today’s environment, where margin compression, floorplan volatility, and shifting dealer behavior can quickly erode profitability, automotive wholesale auction operators need to run leaner, smarter, and more deliberately than ever.

Here are seven guiding principles every auction operator can use to protect performance and profits:

  1. Measure What Matters Most

Even small inefficiencies — from slow turn times to lane underutilization — can erode margin.

  • Track throughput KPIs weekly (vehicles sold per lane hour, recon cycle time, arbitration rates).
  • Benchmark labor productivity against peers and historical averages.
  •  Tie compensation to measurable outcomes that impact margin directly.

Goal: Replace gut feel with actionable data and measurable discipline.

  1. Optimize Recon and Transport Cycles

Idle inventory is lost capital.

  •  Build vendor partnerships to reduce dwell time.
  • Use scheduling software to coordinate movement.
  •  Consider partial in-house capacity if third-party bottlenecks persist.

Goal: Every extra day a vehicle sits idle costs money; for the auction house and the consignor!

 

  1. Manage Floorplan and Cash Flow Proactively

Fluctuating rates make liquidity management critical.

  •  Enforce limits on aged inventory and floorplan exposure.
  • Use dynamic pricing or early-sale strategies for slow-moving units.
  • Monitor capital utilization weekly.

Goal: Liquidity and velocity are the lifeblood of wholesale.

 

  1. Protect Your Consignor and Buyer Base

Volume is relationship-driven.

  •  Segment consignors and tailor reporting and communication.
  •  Offer loyalty incentives for top buyers.
  • Maintain transparency to build repeat business.

Goal: Treat relationships as tangible assets – because they are.

 

  1. Invest in Digital Capability

Hybrid marketplaces are here to stay.

  • Prioritize user-friendly, reliable online bidding experiences.
  • Maintain strict imaging and condition-report standards.
  • Leverage analytics to anticipate buyer demand and run-list optimization.

Goal: Blend digital reach with operational credibility.

 

  1. Build Risk and Compliance Discipline

Operational blind spots can become six-figure problems overnight.

  • Audit title and line processes regularly.
  • Stay current on regulatory requirements and environmental standards.
  • Review insurance coverage annually.

Goal: Prevent small errors from becoming big liabilities.

 

  1. Empower Leadership and Accountability

Structure matters — but culture sustains it.

  • Train supervisors to spot and fix inefficiencies early.
  •  Reinforce accountability at every level.
  • Recognize teams for process improvements and measurable gains.

Goal: Precision and culture together protect profits.

 

Advisory Perspective: Prepare Now, Not Later

Operational improvement is only part of the story. The other half is strategic readiness. Many auction owners start planning for sale or succession too late, missing opportunities to enhance value drivers in advance.

The most successful exits share common traits:

  •       Financial clarity: Clean, audited statements inspire buyer confidence.
  •       Operational consistency: Documented processes and reporting reduce perceived risk.
  •       Leadership continuity: A capable management bench reassures acquirers.
  •       Reputation management: A trusted brand commands premium multiples.

 

By treating preparation as daily discipline, operators improve performance and always stay transaction ready.

 

What Makes Mach10’s Auction Advisory Different

Our approach combines deep operational insight with transactional precision, helping auction owners maximize both performance and enterprise value.

Independent Valuation

Confidential, data-driven assessments that benchmark your performance, uncover value gaps, and identify opportunities for pre-sale improvement.

 

Sell-Side Advisory

Customized go-to-market strategies that enhance financial presentation, streamline operations, and position your auction for premium valuation.

 

Buy-Side Advisory

For qualified buyers, we facilitate seamless transitions and post-acquisition optimization to preserve value and enable scalable growth.

 

Operational Optimization

Collaborative engagements to eliminate inefficiencies, tighten controls, and build reporting systems aligned with investor-grade expectations.

 

Together, these services give our clients both clarity and control – the foundation of strong operations and stronger transactions.

 

Practical Takeaways for Auction Leaders

  1. Operate like a buyer is watching. Clean data, financial transparency, and documentation strengthen confidence and valuation.
  2. Eliminate hidden inefficiencies. Every day between intake and sale ties up capital.
  3. Build leadership depth. Redundancy and cross-training protect operations from disruption.
  4. Prioritize customer experience. Strong relationships create recurring revenue.
  5. Plan ahead. Exit readiness begins long before an LOI is signed.

 

The Road Ahead

The launch of Mach10 Wholesale Auctions is a natural progression of our commitment to help clients protect and grow enterprise value. We’ve built, scaled, and sold auction businesses, and now, we help others do the same with greater clarity and purpose.

Whether you’re operating a regional auction, managing a growing wholesale network, or planning your next strategic move, remember:

Structure drives performance and performance drives value.

 

 

Billy Morgan

Director, M&A

Billy brings valuable experience to Mach10, shaped by his time as Director of an Indianapolis 500 race team and as a Vice President of Sales. His experience in high-performance environments and leading teams aligns superbly with the fast-paced world of M&A in the automotive retail sector. Known for his ability to anticipate and exceed client expectations, Billy leverages strong relationships and strategic insight to structure win-win transactions that deliver long-term value. His blend of operational expertise and client-focused execution makes him a trusted advisor for dealership owners navigating growth or exit opportunities.

Elena Hall

Executive Assistant to 

the CEO

Elena Hall is a highly accomplished professional who thrives in delivering seamless support to Mach10 Automotive's leadership. Her focus on excellence in executive administration and her ability to manage complex tasks with precision make her an important team member. Elena's talent for coordinating projects, streamlining operations, and fostering collaboration ensures that the team can focus on strategic goals. She is committed to making a meaningful impact on the success of Mach10 Automotive and the partners we serve.

Denyn Pysz

Sales Director

Denyn is a dynamic automotive sales leader with over 20 years of experience, recognized for his expertise in technical certifications, retail sales, and service. With a proven record of driving growth, Denyn has excelled in key management roles across dealership operations, equipping him with a comprehensive understanding of dealership needs at every level. Known for his ability to build high-performing teams and deliver revenue growth, his innovation-driven approach and industry insight make him a trusted authority in automotive sales and service. At Mach10, Denyn advises our clients in Sales, Service, F&I, and Operations, guiding them toward optimized performance and success.

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Kathi Kruse

Financial Operations Analyst

Kathi Kruse is a uniquely qualified and accomplished automotive retail advisor. Recognized as a dealership profitability specialist, digital strategist, trainer/coach, podcaster, and author, Kathi is the creator of the Kruse Control Newsletter, and Founder/CEO of Automotive CFO-To-Go, and Kruse Control Inc.  Born in the heart of Los Angeles to a family of “car people”, Kathi’s passion for the car business spans a 25-year automotive retail career, managing wildly successful $100M+ stores in Southern California. Her exceptional experience, combined with her innovative methods, has led to transformational outcomes and increased profits for over 1,000 clients to date.

Chris Pero

Sr. Director, M&A

Chris’ automotive experience spans over a decade in both retail and wholesale. Chris has provided support by growing an auction company at the management level in southern California, and most recently, he was a part of the management team at a Ford and Lincoln dealership.Through his unique experience and determination, he has a proven track record of growth and success and understands the unique needs of the dealership at every level.

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George Pero

President & CEO

Extremely accomplished leader in the automotive industry recognized for his success in retail and remarketing. George’s career achievements include successfully launching and running Auctions In Motion (“AIM”), a regional “mobile” auction company that brings the auction to the dealer. George also holds a wealth of knowledge & expertise in mergers & acquisitions in the automotive sector. He recently served as the Vice President of a national brokerage firm where he was one of the top producers. His experience in the M&A industry brings a keen sense of the due diligence process as well as the art of negotiating while representing both seller and buyer.

Michael Yanke

Vice President, M&A

Michael has demonstrated success in expanding multimillion-dollar sales and fostering growth while providing sales leadership in highly competitive global markets. Michael brings decades of marketing management with a proven record of achievement. For over 25 years, he has been successful at building new businesses, securing client loyalty and forging strong relationships with external business partners. His extensive knowledge of marketing strategies, channels, and branding has helped companies achieve success through his leadership, communication, and collaboration abilities.

Jon Karasek

Vice President Innovation

Having recently held the position of Regional Director of Digital Strategy and Innovation for the industry’s largest independent auto auction group, Jon’s skills range from mechanical/technical certifications to wholesale and retail sales. Jon was recognized for leadership accomplishments when honored with the 2021 Automotive Remarketing 40 Under 40 Award. He is an accomplished auctioneer with over 20 years of experience in the automotive industry. Jon graduated from the World Wide College of Auctioneering, and then excelled as the GM of one of Southern California’s premier wholesale auto auctions.

Chris Pero

Director, M&A

Chris’ automotive experience spans over a decade in both retail and wholesale. Chris has provided support by growing an auction company at the management level in southern California, and most recently, he was a part of the management team at a Ford and Lincoln dealership. Through his unique experience and determination, he has a proven track record of growth and success and understands the unique needs of the dealership at every level.

David Foley

Director, M&A

David is a seasoned automotive executive with over twenty years of industry experience. As a results-driven Sales Manager, he consistently delivers impressive revenue growth and prioritizes customer satisfaction. Renowned for his ability to build and lead high-performing teams, David’s visionary approach and innovation-driven mindset keep him at the forefront of the automotive sector. His unwavering integrity and keen eye for industry trends position him as a trusted leader actively shaping the future of automotive sales.

Sam Abergel

Director, Fixed Operations

With over four decades of automotive industry experience, Sam’s impressive career began in sales at a Chrysler Plymouth dealership, where he was promoted to Service Manager within 18 months. Noteworthy achievements include leadership roles as the President of the Parts and Service Managers Guild in Los Angeles and representation on the Porsche North America Round Table. Sam’s extensive experience and track record of performance improvements includes orchestrating successful dealership transitions, managing and growing service and fixed operations as a transformative leader at Chrysler-Dodge, Audi, Lexus, and Porsche dealers. At Mach10, our clients benefit from Sam’s expert knowledge in driving dealership profitability through strategic guidance, coaching, and creating tailored client solutions.

Shasta Pellegrino

Executive Administrator

Shasta is a dynamic professional who excels at identifying and implementing effective solutions to complex problems. Her dedication to Mach10’s administrative needs and her commitment to excellence make her an invaluable asset. Shasta's passion for working closely with people and ability to collaborate seamlessly with colleagues and stakeholders alike makes her a perfect fit for the Mach10 team. With her blend of administrative expertise, people skills, and proactive approach to problem-solving, Shasta is poised to contribute significantly to the success and growth of our team and our client partners.

Carsten Preisz

Chief Marketing Officer

Carsten’s extensive achievements includes introducing and establishing Dutch Supercar Spyker in the Americas and holding senior management/executive positions with esteemed and iconic automotive OEMs to include Rolls-Royce, Bentley, Peugeot, and Fisker Automotive. Most recently, Carsten’s contributions with Market Scan Information Systems, Inc., were key to the company being acquired by S&P Global Mobility.

Whether the challenge calls for creating the customer standards for Bentley/Rolls-Royce or being responsible for the Los Angeles Marathon TV-broadcast, which led to an Emmy nomination, Carsten is instinctually entrepreneurial and an out of the box thinker who enjoys solving strategic challenges to elevate the client experience and maximize profitability.