SAN FRANCISCO -

The “virtual freeze” in dealership merger and acquisition activity in the preceding three years has thawed in dramatic fashion during 2011, according to the automotive wing of The Presidio Group financial services firm.

Presidio’s report says it is an ideal time to buy dealerships — which are currently enjoying record per-store profits and healthier sales — and retailers are apparently taking advantage.

In fact, the amount of acquisition spending by public auto retailers through the first seven months of 2011 is almost 70 percent higher than the total amount spent during 2009 and 2010 combined, the Automotive Retail M&A Update indicated, citing the Securities and Exchange Commission.

Presidio noted that private buyers don’t report terms of purchases, but the firm did note that these deals are “active” this year, as well.

And it looks like M&A activity — and car sales — may only continue to blossom.

Sharing some specifics, acquisition activity for public retailers totaled $411 million year-to-date through July. For full-year 2010, there were $214 million in acquisitions, following a year of only $28 million in 2009.

Full-year 2011 acquisitions might eclipse the $750 million mark. Presidio called this “impressive” but noted that the M&A hit a peak in 2006 at $1 billion.

So, what has led to such a hefty bump this year?

Presidio boils it down to numerous factors, including stronger new-car sales, the record profits dealers are pulling in and the fact that there aren’t as many “marginal” stores.

Additionally, real estate values are steadier and interest rates are low, all of which helps boost M&A activity.

“The M&A market for auto dealerships has rebounded strongly this year, after its virtual freeze of 2008-10,” stated Alan Haig, the managing director and co-head of Presidio’s automotive retail services group.

“During the recession, most public companies and large private buyers shied away from acquisitions, and the few offers that were made were unattractive to sellers,” Haig added. “Today, the perceived valuations of buyers and sellers are closer, so we’re seeing significant activity because of pent-up interests, as well as a dramatic improvement in dealer profitability.”

And even though the aftermath of the disasters in Japan, Europe’s debt crisis and the U.S. economy’s present hurdles, there is pent-up demand among car shoppers and in the auto M&A market. This stems from the fact that during the recession, car sales dropped significantly as did dealership buy-sells, officials noted.

“These industries are cyclical, and we are in the early part of the upswing for both. As a result, we expect the auto retail market to continue to grow for at least the next five years and dealership acquisition activity to continue at a brisk pace,” officials noted.

“Buyers currently have the capital to invest and are prepared to do so as they recognize that conditions are ripe for a long and lucrative run in auto retail. The number of franchises has declined, so sales per franchise should be higher than ever,” they continued.

Presidio noted further that with dealers running more fine-tuned and cost-effective businesses, volumes increasing and competition decreasing, profit per dealership is higher “than we have ever seen, even during the boom times of 2001-2006.”