Transaction marks the 166th transaction led by Kerrigan Advisors since 2015, and their 6th multi-dealership sale in 2022

Incline Village, NV – October 20, 2022– – Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented Baxter Automotive Group in its sale of four Chrysler Dodge Jeep Ram dealerships (CDJR): Baxter of Omaha, Baxter of Papillion, Baxter of Bellevue, Baxter of Lincoln. The dealerships were sold to a partnership of Edwards Auto Group, Sid Dillon Auto Group and H&H Automotive.

“Our firm was honored to represent Baxter Auto Group in this transaction,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “We have had the opportunity to work with the Baxter team over the last several years, helping them determine how to best grow and broaden their business. This transaction will allow them to diversify geographically and to focus on core brands.”

“Kerrigan Advisors has been with us every step of the way on this transaction,” said Mickey Anderson, President of Baxter Automotive Group. “Their partnership not only gave our team confidence that this transaction was aligned with our objectives and values, but also to move forward with key strategic decisions.”

Founded over 60 years ago, Baxter Automotive Group is the 44th largest US dealership group with more than 20 locations across Nebraska, Kansas and Colorado. Baxter’s dedication to the communities they serve is legendary and a core principle of their founder, Tal Anderson – one that continues to this day across hundreds of partnerships and charitable causes, including Boys & Girls Club of the Midlands and the University of Nebraska.

“There remains very healthy buyer demand for high volume domestic dealerships in domestic dominant markets like Nebraska” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “The CDJR brand captures impressive market share in the Lincoln and Omaha markets. Buyers are quick to step up for franchises that fit a market well, as Baxter’s franchises did here.”

The transaction features four high volume dealerships that represent over 55% of CDJR sales in the Omaha market, driven by the success of premium brands Jeep and Ram. “These are successful dealerships representing strong brands in the growing Omaha and Lincoln market. This significant transaction, the highest value in the Omaha market to our knowledge, is evidence that valuations remain high for successful dealerships that are well suited to a market, a trend discussed in our firm’s quarterly Blue Sky Report,” said Ryan Kerrigan.

The transactions are the 163rd, 164th, 165th, and 166th dealerships sold by Kerrigan Advisors since 2015, and their 20th dealership sold this year. To date, Kerrigan Advisors has led six multi-dealership transactions in 2022.

“When we originally reached out to Kerrigan Advisors, we did so because we knew that they brought unique strategic insight to growing groups such as ours. Our conversations ultimately led to the decision to sell the Stellantis platform, and their expert advice has been critical during the sale process,” continued Anderson. “They represented our best interests, provided invaluable strategic market insight, and handled the transaction superbly. We cannot recommend them enough to other dealers considering a sale or divestiture.”

Don Erftmier, Jr. of Erftmier Law, LLC served as legal counsel to the seller.

To contact Kerrigan Advisors, the most active sell-side advisor on larger transactions in the auto retail industry, click here.

About Kerrigan Advisors 

Kerrigan Advisors is the premier sell-side advisor and thought partner to auto dealers in the US. The firm advises auto dealers nationwide, enhancing value through the lifecycle of growing, operating and monetizing their businesses, as well as offering restructuring and turnaround consulting services. Kerrigan Advisors has had the honor of representing the industry’s largest transactions, including more Top 150 Dealership Groups than any other firm in the industry. Led by a team of veteran industry experts, the firm does not take listings, rather Kerrigan Advisors develops a customized approach for each client to achieve their personal and financial goals. In addition to Kerrigan Advisors’ sell-side advisory and capital-raising services, the firm also provides a suite of consulting services including growth strategies, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate analysis.

Kerrigan Advisors publishes The Blue Sky Report®, which is the auto industry's most comprehensive and authoritative quarterly report of dealership buy/sell activity and franchise values, received by nearly 10,000 industry participants in 35 countries. To register to receive The Blue Sky Report®, click here. Kerrigan Advisors also publishes The Kerrigan Index™, the only monthly report tracking the seven publicly traded auto retail companies. To access The Kerrigan Index™, click here.

Kerrigan Advisors Media Contact:

Melanie Webber (melanie@mwebbcom.com), mWEBB Communications, 949-307-1723

Fields Auto Group acquires coveted luxury dealerships; sale marks the 161st and 162nd Kerrigan-led dealership sale since 2015, and fifth multi-dealership transaction in 2022

Incline Village, NV – October 19, 2022 – Kerrigan Advisors, the premier sell-side advisory firm to auto dealers in the US, represented and advised Sun Motor Cars of Chicago, owned by Daniel Sunderland and David Nocera on the sale of Mercedes-Benz & Sprinter of Orland Park and the scheduled sale of Mercedes-Benz of Bourbonnais to Illinois and Florida-based Fields Auto Group, one of the largest private dealership groups in the nation. This transaction marks Kerrigan Advisors’ 161st and 162nd dealership sale since its founding in 2015 and the firm’s fifth multi-dealership transaction in 2022. With this sale, Kerrigan Advisors remains the most active sell-side advisor to the highest-value transactions in auto retail.

“We were honored to represent these two highly valuable Mercedes dealerships in the Chicagoland market on behalf of the Sunderland and Nocera families. This transaction is an excellent example of the continued strength of the buy/sell market, particularly for top luxury franchises like Mercedes. Many growing groups are seeking to add high volume Mercedes dealerships in major US metros,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. Kerrigan noted that luxury sales are on the rise, outperforming the overall auto retail market (luxury sales increased 24% in 2021, while the overall auto retail market rose only 3.3% despite inventory challenges).

As part of this transaction, Fields is scheduled to acquire and relocate Mercedes-Benz of Bourbonnais to a newly built dealership in Romeoville. With this move, the Orland Park and Romeoville Mercedes-Benz and Sprinter franchises will be the exclusive dealers for Mercedes in the growing southwestern region of Chicago, serving a population of over 650,000.

“When we decided it was the right time to sell, we knew Kerrigan Advisors had the most experience with higher value dealerships. They’ve sold more luxury franchises in the Midwest, particularly Chicago, than any firm in the industry,” said Dan Sunderland, co-owner of Sun Motor Cars of Chicago. “The expertise of the Kerrigan Advisors’ team, particularly Marie Brashears, proved invaluable throughout the sale process and ensured as smooth a closing as possible. We are very grateful they were our advisors and by our side throughout this transaction.”

Opened almost 30 years ago, Mercedes-Benz & Sprinter of Orland Park became one of the highest volume luxury dealerships in Orland Park, the fifth largest luxury market in the Chicago MSA. Under the leadership of David Nocera, a longtime member of Mercedes-Benz Dealer Council, Mercedes-Benz of Orland Park built a reputation for outstanding customer and employee service, receiving numerous awards, including Mercedes’ ‘Best of the Best’ six times and the ‘Employee Choice Best Place to Work Award’ two years in a row.

“Mercedes-Benz & Sprinter of Orland Park are pillars in the south Chicago auto market. The success of these dealerships is built upon the stellar work of our committed, longtime employees and a heartfelt commitment to top customer service,” said David Nocera, co-owner of Mercedes-Benz & Sprinter of Orland Park and Mercedes-Benz of Bourbonnais. “We are grateful to Kerrigan Advisors for identifying the Fields organization as the right buyer to continue our commitment to our customers, employees and community, particularly with the expansion into the Romeoville market. We are excited to see Fields capitalize on their strong brand and enter the south Chicago car market with our stores.”

Kerrigan Advisors is the most active sell-side advisor on larger transactions in the auto retail industry, achieving the highest sale price per client of any firm over the last six years. The firm attributes its success to its team’s laser-focus on fulfilling each client’s personal and professional goals. In addition to its sell-side advisory work, the firm offers strategic consulting services to dealers and their families, including growth planning, capital raising and valuation analysis, creating value at every stage of the auto retail lifecycle. 

Mark Lyman of Lyman Law Firm provided legal counsel to the seller. Stephen Dietrich and Henry Lowe of Holland & Knight provided legal counsel to the buyer.

About Kerrigan Advisors 

Kerrigan Advisors is the premier sell-side advisor and thought partner to auto dealers in the US. The firm advises auto dealers nationwide, enhancing value through the lifecycle of growing, operating and monetizing their businesses, as well as offering restructuring and turnaround consulting services. Since the firm’s founding, Kerrigan Advisors has had the honor of representing the industry’s largest transactions, including more Top 150 Dealership Groups than any other firm in the industry. Led by a team of veteran industry experts, the firm does not take listings, rather Kerrigan Advisors develops a customized approach for each client to achieve their personal and financial goals. In addition to Kerrigan Advisors’ sell-side advisory and capital-raising services, the firm also provides a suite of consulting services including growth strategies, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate analysis.

Kerrigan Advisors publishes The Blue Sky Report®, which is the auto industry's most comprehensive and authoritative quarterly report of dealership buy/sell activity and franchise values, received by nearly 10,000 industry participants in 35 countries. To register to receive The Blue Sky Report®, click here. Kerrigan Advisors also publishes The Kerrigan Index™, the only monthly report tracking the seven publicly traded auto retail companies. To access The Kerrigan Index™, click here.

Kerrigan Advisors Media Contact:

Melanie Webber (melanie@mwebbcom.com), mWEBB Communications, 949-307-1723

Despite negative economic headlines and a volatile stock market, auto retailers continued their expansion through acquisition, with buy/sells increasing 16% YOY, despite spending pullbacks by public retailers, according to the Second Quarter 2022 Blue Sky Report® by Kerrigan Advisors; as dealer balance sheets flush with cash fueled demand, more private buyers entered the market

Incline Village, NV – August 31, 2022– The auto dealership buy/sell market continued its record-breaking activity despite economic headwinds during the second quarter of 2022, up 16% compared to 2021, according to the just-released Blue Sky Report® by Kerrigan Advisors. There were 167 dealership buy/sell transactions reported in the first half of 2022, resulting in 406 transactions for the trailing twelve months ending June 2022[1] – a new industry high.

In the second quarter of 2022, average dealership blue sky values increased to a new record of $12.1 million, a $5.7 million increase in blue sky value since 2019, largely driven by record dealership earnings: for the 12 months ending June 2022, the average dealership earned an estimated $4.3 million, a 207% increase over the pre-pandemic average.

“Today, dealership balance sheets are flush with cash, with current assets nearly double current liabilities, and debt-to-equity is at historically low levels,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “Despite multiple unknown variables facing auto retail, the majority of dealers are looking to redeploy their tremendous cash flow back into the industry they know and love, resulting in more demand than supply of dealerships on the market today.”

Kerrigan noted that in the first half of 2022 more private buyers came in the market, and although there were more buyers than sellers, the number of sellers was also on the rise. “As the public retailers’ share of the buy/sell market declined, the largest private dealership groups remained focused on growing through acquisition. In fact, the largest private groups increased their share of the buy/sell market to more than double that of the publics.” 

In the first half of 2022, private buyers accounted for 91% of franchises acquired and the top private dealership groups increased their share of the buy/sell market to 23% -- more than double the publics’ share of 9%. That’s a significant change from 2021, when the publics acquired 29% of franchises sold. Kerrigan Advisors believes that the decline in public spending may be attributed to compression of the publics’ stock prices.

International buyers are also on the rise in 2022. Globally, OEMs are rolling out a new retail agency model, where dealers serve as delivery agents for a set fee. In the US, the agency model faces significant scrutiny by many state associations, especially given state franchise laws. As a result, an increasing number of international dealers are seeking to acquire dealerships in the US where they feel their investment has stronger protections.

“The number of transactions completed by internationally-based acquirers is currently tracking to double last year’s volume. These buyers are highly attracted to the US franchise protections and consider a US franchise acquisition a much sounder investment than one in their home country,” continued Kerrigan. “In some cases, international buyers are willing to pay a price premium to enter the US market and are eager to deploy considerable amounts of capital into US dealership acquisitions.”

The Publics Decrease Acquisition Spending

Compared to the first half of 2021, US public auto retailers’ acquisition spending on US dealerships fell 49% and declined to just 9% share of the buy/sell market – a dramatic reversal from 2021 when the publics dominated the buy/sell market.

“The decline in the publics’ spending could be due to compression of their stock prices,” continued Kerrigan. “They allocated the majority of their capital to stock buybacks, rather than acquisitions in the first half of 2022, which was a reversal of their capital allocation in the first half of 2021.” During the first half of 2022, the six public auto retailers spent more than $2.2 billion on stock buybacks – a 97% increase over the first half of 2021.

Second Quarter 2022 Buy/Sell Trends

Kerrigan Advisors has identified the following three trends which it expects to meaningfully impact the buy/sell market for the remainder of 2022:

·        Blue sky values become harder to assess as record earnings continue for third consecutive year

·        Impact of rising interest rates begins to affect commercial real estate values

·        International dealers increasingly seek US dealership acquisitions due to strength of franchise laws

Kia / Hyundai Franchise Demand; Ford Dealer Skepticism

While Kerrigan Advisors made no adjustments to its blue sky multiples for Q2 2022, the firm upgraded the multiple outlooks for Kia and Hyundai. “During the quarter, we saw a substantial increase in demand for Kia and Hyundai franchises,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “Both franchises outperform the market in sales and earnings growth, and dealers are particularly satisfied with their product portfolios. Our expectation is that their multiples will increase in coming quarters if this trend continues.”

During the quarter, Kerrigan Advisors also noted a rise in Ford dealers considering a sale of their franchises. Early results from the 2022 Kerrigan Dealer Survey, which will be published in October, reflect an expectation that the Ford franchise will decline in value over the next 12 months. “We believe that this negative sentiment is a result of the announced changes to the Ford franchise model, particularly with electrification, and a growing distrust of the OEM’s plans for future dealership profitability,” continued Ryan Kerrigan. 

Highlights from the Q2 2022 Blue Sky Report® by Kerrigan Advisors include:

·        167 dealership buy/sell transactions reported in the first half of 2022 resulting in 406 transactions for the twelve months ending June 2022.

·        In the second quarter of 2022, average dealership blue sky value increased to a new record of $12.1 million, a $5.7 million increase in blue sky value since 2019.

·        42 multi-dealership transactions, representing 25% of the buy/sell market, closed in the first half of 2022, a decline of 18% relative to 2021. Kerrigan Advisors attributes the decline in multi-dealership transactions to rising interest rates and valuation declines in the stock market.

·        Private buyers acquired 91% of franchises sold with the top 144 private dealership groups growing their share of the buy/sell market to 23%, more than double that of the publics.

·        Domestic franchise share of the buy/sell market remains below 50% and is now 26% below their franchise market share of 66%.

·        Import non-luxury franchises increased their share of the buy/sell market to 39% in the first half of 2022, demonstrating the strength of their business model and profit outlook.

·        Nearly as many Toyota franchises traded hands as Chevrolet, Ford and CJDR, despite having 56% fewer franchises in the market.

·        During the first half of 2022, public auto retailers spent more than $2.2 billion on stock buybacks – a 97% increase over the first half of 2021 and spending on acquisitions declined by 49% compared to the first half of 2021.

·        The Kerrigan Index™ declined 16% year-to-date through July 2022, underperforming the broader market. With lower market capitalizations, acquisitions become more difficult for the publics to justify, in part because fewer are accretive to earnings. 

The Blue Sky Report®, published by Kerrigan Advisors, is the auto retail industry's most comprehensive and authoritative quarterly report on dealership M&A activity, as well as franchise values. The quarterly report, received by nearly 10,000 industry recipients in 35 countries, includes analysis of all dealership transaction activity for the year, and lays out the high, average and low blue sky multiples for each franchise in the luxury and non-luxury segments. For more details and to preview the report, click here. To sign up to receive the quarterly report, click here.

Kerrigan Advisors also releases monthly The Kerrigan Index™ composed of the seven publicly traded auto retail companies with operations focused on the US market. The Kerrigan Auto Retail Index is designed to track dealership valuation trends, while also providing key insights into factors influencing auto retail. To access The Kerrigan Index™, click here.

About Kerrigan Advisors 

Kerrigan Advisors is the premier sell-side advisor and thought partner to auto dealers in the US. The firm advises auto dealers nationwide, enhancing value through the lifecycle of growing, operating and monetizing their businesses, as well as offering restructuring and turnaround consulting services. Kerrigan Advisors has had the honor of representing the industry’s largest transactions, including more Top 150 Dealership Groups than any other firm in the industry. Led by a team of veteran industry experts, the firm does not take listings, rather Kerrigan Advisors develops a customized approach for each client to achieve their personal and financial goals. In addition to Kerrigan Advisors’ sell-side advisory and capital-raising services, the firm also provides a suite of consulting services including growth strategies, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate analysis.

Kerrigan Advisors publishes The Blue Sky Report®, which is the auto industry's most comprehensive and authoritative quarterly report of dealership buy/sell activity and franchise values, received by nearly 10,000 industry participants in 35 countries. To register to receive The Blue Sky Report®, click here. Kerrigan Advisors also publishes The Kerrigan Index™, the only monthly report tracking the seven publicly traded auto retail companies. To access The Kerrigan Index™, click here.

Kerrigan Advisors Media Contact:

Melanie Webber (melanie@mwebbcom.com), mWEBB Communications, 949-307-1723

[1] Source: The Banks Report, Automotive News, Kerrigan Advisors’ Research

Holmes Honda Shreveport and Honda Bossier City sold to Community Auto Group and Mercedes-Benz and Sprinter of Shreveport, Jaguar Land Rover Shreveport and Holmes Volvo Cars of Shreveport sold to Group 1 Automotive

Incline Village, NV – July 13, 2022– Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented Shreveport, Louisiana-based Holmes Auto Family in the sale of Holmes Honda Shreveport and Holmes Honda Bossier City, among the highest volume dealerships in Louisiana, to Houston, Texas-based Community Auto Group, and Mercedes-Benz and Sprinter of Shreveport, Jaguar Land Rover Shreveport and Holmes Volvo Cars of Shreveport to Group 1 Automotive (NYSE: GPI). The sale of the Holmes group marks the 160th dealership sale led by the Kerrigan Advisors team since its founding in 2015. Kerrigan Advisors, which focuses exclusively on sell-side representation, is the most active sell-side advisor on the highest value transactions in the auto retail industry and has advised on the sale of 17 Honda dealerships and 29 multi-dealership transactions since 2015.

“Holmes Auto Family’s dealerships are among the highest performing dealerships in Louisiana, a success that was carefully built by the Holmes family over four generations,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. Holmes Honda Shreveport has consistently been the highest volume dealership in Shreveport and one of the highest volume in the state of Louisiana, while Mercedes-Benz of Shreveport has been one of the top luxury dealerships in the market. “When the family decided that the time was right for a sale, we were honored to assist them in identifying the right buyers to continue their family’s generational legacy in the Shreveport market and appreciated the opportunity to work with Holmes’ exceptional team,” said Kerrigan. “We were pleased to facilitate a seamless transaction with Community Automotive Group and Group 1 Automotive, companies that share Holmes’ dedication to customer service and community outreach.”

Charlton Holmes, President of Holmes Auto Family, has served as the Chairman of the American Honda National Dealer Council and is the third generation of Holmes family members to lead the group, along with his daughter Paige Holmes, Vice President of Holmes Auto Family. “My great-grandfather Claude Holmes opened his first Louisiana dealership in 1937, and every day since my family and I have worked hard to make it easy for our customers to buy a car or get one serviced,” said Charlton Holmes. “That starts with our superlative team and extends to our commitment to give back to local organizations and non-profit groups. After 85 years of Holmes serving the Shreveport community, the time was right to transition our business to new owners, and Kerrigan Advisors proved the ideal advisor to help secure the best possible transaction for our group and family. We were especially impressed with Kerrigan’s deep market insights and expertise in every aspect of the buy/sell process and their team’s commitment to client service throughout the process.”

The transaction occurred in a time of high activity in the buy/sell space, especially regarding import franchises, according to Ryan Kerrigan, Managing Director of Kerrigan Advisors.  

“Import franchises have increased their buy/sell market share to 64% in 2021, a trend that’s particularly pronounced in high demand markets in the Southern US, like the Ark-La-Tex region. These areas are generally more business-friendly and economically robust, resulting in a growing pool of buyers seeking to acquire dealerships in these markets, particularly top import franchises like Honda and Mercedes,” said Ryan Kerrigan. “Holmes Auto Family represented a very strong brand in Louisiana. That made these five dealerships especially attractive. We are proud to have been able to use our extensive market intelligence and analytics to assist the Holmes Auto Family in this transaction and to match them with two buyers who will continue the Holmes track record of success.”  

Kerrigan Advisors is the most active sell-side advisor on larger transactions in the auto retail industry, achieving the highest sale price per client of any firm over the last five years. The firm attributes its success to its team’s laser-focus on fulfilling each client’s personal and professional goals. In addition to its sell-side advisory work, the firm offers strategic consulting services to dealers and their families, including growth planning, capital raising and valuation analysis, creating value at every stage of the auto retail lifecycle. 

Kerrigan Advisors monitors conditions in the buy/sell market and publishes an in-depth analysis each quarter in The Blue Sky Report®, which includes Kerrigan Advisors’ signature blue sky charts, multiples, and analysis for each franchise in the luxury and non-luxury segments. To download a preview of the report, click here. The firm also releases monthly The Kerrigan Index™ composed of the seven publicly traded auto retail companies with operations focused on the US market. The Kerrigan Auto Retail Index is designed to track dealership valuation trends, while also providing key insights into factors influencing auto retail. To access The Kerrigan Index™, click here. To read the 2021 Kerrigan Dealer Survey, click here. Kerrigan Advisors also is the co-author of NADA’s Guide to Buying and Selling a Dealership.

About Kerrigan Advisors 

Kerrigan Advisors is the premier sell-side advisor and thought partner to auto dealers in the US. The firm advises auto dealers nationwide, enhancing value through the lifecycle of growing, operating and monetizing their businesses, as well as offering restructuring and turnaround consulting services. Kerrigan Advisors has had the honor of representing the industry’s largest transactions, including more Top 150 Dealership Groups than any other firm in the industry. Led by a team of veteran industry experts, the firm does not take listings, rather Kerrigan Advisors develops a customized approach for each client to achieve their personal and financial goals. In addition to Kerrigan Advisors’ sell-side advisory and capital-raising services, the firm also provides a suite of consulting services including growth strategies, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate analysis.

Kerrigan Advisors publishes The Blue Sky Report®, which is the auto industry's most comprehensive and authoritative quarterly report of dealership buy/sell activity and franchise values, received by nearly 10,000 industry participants in 35 countries. To register to receive The Blue Sky Report®, click here. Kerrigan Advisors also publishes The Kerrigan Index™, the only monthly report tracking the seven publicly traded auto retail companies. To access The Kerrigan Index™, click here.

Kerrigan Advisors Media Contact:

Melanie Webber (melanie@mwebbcom.com), mWEBB Communications, 949-307-1723

These are the 12th and 13th Florida dealerships sold by Kerrigan Advisors since 2015, making it the most active sell-side advisor in the state.

Incline Village, NV – July 12, 2022 – Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented Alan Jay Automotive Network in its sale of Alan Jay Toyota in Sebring and Maserati & Alfa Romeo of St. Petersburg in Florida. Alan Jay Toyota was sold to the Doherty Automotive Group of Lakeland, Florida; the Maserati and Alfa Romeo dealerships were sold to Qvale Auto Group of West Palm Beach, Florida.

The sales mark the 156th and 157th dealership sales led by the Kerrigan Advisors team since 2015. Kerrigan Advisors, which focuses exclusively on sell-side representation, is the most active sell-side advisor on the highest value transactions in the auto retail industry, and has advised on the sale of 18 Toyota dealerships in the last seven years, more than any other firm in the industry.

“Throughout this transaction, the Kerrigan Advisors team was professional, diligent, and insightful, always putting our interests front and center,” said Alan Jay Wildstein, Founder, President & CEO of Alan Jay Automotive Network. “For 30 years we’ve operated under a simple philosophy -- treat customers like family. So, I appreciated being represented by a firm who shares that philosophy and who treated us with the same kind of care and dedication.”  

The Alan Jay Automotive Network owns and manages 12 additional locations across 12 automotive brands in Central Florida which they will retain and continue to operate. Since Alan Jay Automotive Network’s founding in 1992, it has contributed to hundreds of events, organizations, fundraisers, and individuals – with special emphasis on philanthropies helping children. This includes the local “Wheels for A's,” promotion, held annually at each of the area's five high schools. In 2020, Founder and CEO Alan Jay Wildstein was honored as Highlands County Philanthropist of the Year; he has also been honored twice as a nominee for the Time Dealer of the Year award and is a past Chairman of the Florida Automobile Dealers Association.

“It was a genuine privilege to represent the Alan Jay Automotive Network in these important transactions,” said Gabe Robleto, Vice President, Sell-Side Advisory of Kerrigan Advisors. “Alan Jay Wildstein’s compassionate philanthropy in the Sebring and St. Petersburg communities, and his dedication to his customers, has created a legacy of commitment and business success that is sure to continue. We’re happy to have helped the Alan Jay team transition these dealerships in a way that will ensure the continuation of their legacy of customer service and community support.”

The transactions are the 12th and 13th Florida dealerships sold by Kerrigan Advisors since 2015, making it the most active advisor in the state. “Florida dealerships are among the highest volume and most profitable in the nation, so it’s no surprise that one out of every 3 buyers in Kerrigan Advisors’ proprietary buyer database is seeking a dealership in Florida. This demand is driven by low regulation, an attractive business climate and incredibly strong population growth,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. Kerrigan noted that blue sky multiples in Florida are one to two turns higher when compared to the published national multiples in The Blue Sky Report® published quarterly by the firm.

According to US Census Bureau data, Florida ranked second, behind Texas, in growth from 2020 – 2021, and had the highest rate of new business openings during that time. US Census Bureau data also ranked the Tampa-St. Petersburg-Clearwater metro area as one of the top ten greatest population growth areas nationwide.

“It is our business to know the buyers who are most interested in our clients and the best match for their personal and financial goals. When you combine these dealerships’ Florida locations with strong brands, and an impressive company like Alan Jay, we had the ingredients for an ideal acquisition opportunity,” continued Kerrigan. “Our team was honored to lead this transaction to a very successful outcome on behalf of Alan and his team.”

Kerrigan Advisors is the most active sell-side advisor on larger transactions in the auto retail industry, achieving the highest sale price per client of any firm over the last five years. The firm attributes its success to its team’s laser-focus on fulfilling each client’s personal and professional goals. In addition to its sell-side advisory work, the firm offers strategic consulting services to dealers and their families, including growth planning, capital raising and valuation analysis, creating value at every stage of the auto retail lifecycle. 

Kerrigan Advisors monitors conditions in the buy/sell market and publishes an in-depth analysis each quarter in The Blue Sky Report®, which includes Kerrigan Advisors’ signature blue sky charts, multiples, and analysis for each franchise in the luxury and non-luxury segments. To download a preview of the report, click here. The firm also releases monthly The Kerrigan Index™ composed of the seven publicly traded auto retail companies with operations focused on the US market. The Kerrigan Auto Retail Index is designed to track dealership valuation trends, while also providing key insights into factors influencing auto retail. To access The Kerrigan Index™, click here. To read the 2021 Kerrigan Dealer Survey, click here. Kerrigan Advisors also is the co-author of NADA’s Guide to Buying and Selling a Dealership.

About Kerrigan Advisors

Kerrigan Advisors is the premier sell-side advisor and thought partner to auto dealers nationwide. The firm advises the industry’s leading dealership groups, enhancing value through the lifecycle of growing, operating and, when the time is right, selling their businesses. Kerrigan Advisors has represented on some of auto retail’s largest transactions and advised more of the largest dealership groups in the US than any other buy/sell firm in the industry. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, the firm does not take listings, rather they develop a customized approach for each client to achieve their personal and financial goals. In addition to Kerrigan Advisors’ sell-side advisory and capital raising services, the firm also provides a suite of consulting services including growth strategy, market valuation assessments, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate due diligence.

Kerrigan Advisors Media Contact:

Melanie Webber (melanie@mwebbcom.com), mWEBB Communications, 949-307-1723

Auto Dealership Buy/Sell Market Starts Strong in 2022, Outpacing First Quarter 2021: Dealership Confidence Remains High Despite Looming Economic Headwinds   

Blue sky values rise driven by record first quarter dealership profits; growth in fixed operations expected to counteract potentially softening consumer demand, bolstering dealership confidence and profits; continued buy/sell market and valuation strength expected in 2022, especially for Lexus and Toyota, according to the First Quarter 2022 Blue Sky Report® by Kerrigan Advisors

Incline Village, NV – June 20, 2022– The auto dealership buy/sell market is off to a powerful start in the first quarter of 2022, significantly outpacing the first quarter of 2021, according to the just-released Blue Sky Report® by Kerrigan Advisors. The 72 dealership buy/sell transactions reported in the first quarter resulted in a record 389 transactions[1], representing 829 franchises, for the twelve months ending March 2022. During the quarter, average dealership blue sky values increased to a new record of $11.5 million, an improvement of 4.6% over the end of 2021, mostly driven by a continued rise in quarterly dealership profits, which surpassed the first quarter of 2021 by an estimated 27%.

In spite of potential economic headwinds, Kerrigan Advisors expects that 2022 will be another very active year for the buy/sell market with high valuations, constrained only by the supply of dealerships available for sale and supported by a highly profitable auto retail market.

“It was another extraordinary quarter for the buy/sell market, even in the face of turmoil in the financial markets,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “If this transaction pace continues, nearly every dealership in the US would trade hands in the next 20 years, leading to fewer single point dealers and a much higher concentration of vehicle sales amongst the leading consolidators.”

Regarding today’s inflationary environment, The Blue Sky Report expects that auto retail may benefit as the price of consumers’ trade-in vehicles appreciates, providing higher levels of vehicle equity. In addition, the industry’s high variable cost structure means inflationary costs will not immediately impact the operational expenses of a dealership. Furthermore, the report notes, a tailwind is expected from the highest margin business segment in auto retail, fixed operations - as miles driven rebounds and the US vehicle fleet continues to age. Resulting service and parts sales will bolster earnings, even if consumer demand for vehicles softens.

“As a result of the auto industry’s structural advantages against inflation, combined with pent-up consumer demand and improved operational efficiencies from technology, Kerrigan Advisors expects auto retail earnings to outperform the broader US retail market this year, giving both public and private dealers tremendous cash flow to continue their acquisition expansion plans,” continued Kerrigan. “Most dealers are confident in the strength of today’s dealership business model which has historically remained profitable even during periods of recession. As a result, a vast majority of dealers today are buyers, not sellers.”

The Publics Increase Acquisition Spending on Dealerships

Of note in the report is the 40% increase in acquisition spending by the public auto retailers in Q1 2022, relative to the first quarter of 2021. For example, Lithia, Penske, and Group 1 acquired nine dealerships for a total of $606 million, averaging $67 million per dealership purchased. In the trailing twelve months as of March 2022, the publics spent nearly $9.2 billion on acquisitions as their combined net income hit a record $5.8 billion. “The publics high levels of liquidity, combined with relatively low debt to equity ratios, can facilitate the financing of future acquisitions,” said Kerrigan.

First Quarter 2022 Buy/Sell Trends

Kerrigan Advisors has identified the following three trends which it expects to meaningfully impact the buy/sell market for the remainder of 2022:

·         Buyer demand for Toyota and Lexus franchises far surpasses other franchises.

·         Rising interest rates expected to temper blue sky and real estate appreciation.

·         Industry fragmentation provides acquisition opportunities for groups seeking market leadership.

Toyota / Lexus Strength

According to the report, despite the expected retail model changes coming to the market, dealers have confidence in Toyota and Lexus based on the OEM’s operating philosophy that a highly profitable dealer body results in a highly profitable OEM. This is proven out as Toyota, which continues to be the best-capitalized OEM with the highest credit rating amongst its competitors and the greatest level of liquidity, gained market share in the first quarter, cementing its position as the number one automaker in the US.

“Toyota/Lexus’ win/win approach makes an investment in these franchises, even during times of uncertainty, even more attractive to well-funded buyers,” said Ryan Kerrigan, managing director of Kerrigan Advisors. “We find that buyer demand for Toyota and Lexus franchises is rising exponentially and is currently a step-function above other franchises. As a result, we have increased Toyota’s blue sky multiple range to 6.5 to 7.5 and Lexus’ blue sky multiple range to 7.5 to 9.0.”

Rising Interest Rates

Rising rates will have an immediate impact on investors’ cost of capital and return on investment expectations, says the report, likely resulting in lower blue sky multiples in the future. While dealership earnings in 2022 are expected to exceed 2021, blue sky values are projected to rise at a slower pace and potentially plateau by the end of the year. Meanwhile, dealership real estate, like blue sky values, will also feel the impact of investors’ rising cost of capital, which could ultimately lead to lower appraisals, despite higher rents.

Industry Fragmentation

The Blue Sky Report notes that the auto retail industry is the largest, most fragmented retail industry in the US.  In 2021, total US dealership revenue represented the highest percentage of total retail sales of any sector at 17% -- 90% of which was produced by approximately 8,000 franchised dealers.

“Kerrigan Advisors expects capital will continue to flow to auto retail because few industries provide the opportunity to profitably expedite market leadership,” continued Ryan Kerrigan. “The catalyst of industry change in the form of digital retailing, electrification and OEM agency models is expected to accelerate consolidation across the next decade, resulting in more large groups and fewer single- point dealers.”

Blue Sky Multiple & Outlook Adjustments

In the first quarter of 2022, Kerrigan Advisors also increased the blue sky multiple for BMW, in addition to the increases for Toyota and Lexus. All three franchises will see their blue sky multiple outlooks moved to steady for the remainder of the year, as Kerrigan Advisors does not expect further increases due to rising interest rates.

Highlights from the Q1 2022 Blue Sky Report® by Kerrigan Advisors include:

·       72 dealership buy/sell transactions, representing 125 franchises, were completed in the first quarter of 2022,  a 9.1% increase over the first quarter of 2021.

·       A record 389 transactions closed through the trailing 12 months as of March 2022, representing 829 franchises.

·       Average dealership blue sky values rose to a record $11.5 million in the first quarter of 2022, a 4.6% increase over the fourth quarter of 2021, driven by record dealership profits.

·       22 multi-dealership transactions, representing 31% of the buy/sell market, closed in the first quarter.

·       Private buyers acquired 92% of franchises sold with the top 144 private dealership groups increasing their share of the buy/sell market to 18%, up from 13% in 2021.

·       Domestic franchises saw their share of the buy/sell market rise; CDJR, Ford and Chevrolet led with a total of 45.6% buy/sell market share.

·       Toyota represented 11.2% of the buy/sell market in the first quarter, more than any other import franchise.

·       The publics’ spending on acquisitions increased by 40% in the first quarter of 2022 versus the first quarter of 2021.

·       The publics spent nearly $9.2 billion on acquisitions in the trailing twelve months as of March 2022, a record.

·       The publics acquired as many dealerships as they sold, with Group 1, Asbury and Lithia selling a total of nine dealerships

·       The Kerrigan Index is up 223% from March 2020 lows, outperforming the S&P 500; however, it is down 21% from its 2021 peak, reflecting public market concern about softening consumer demand.

The Blue Sky Report®, published by Kerrigan Advisors, is the auto retail industry's most comprehensive and authoritative quarterly report on dealership M&A activity, as well as franchise values. The quarterly report, received by nearly 10,000 industry recipients in 35 countries, includes analysis of all dealership transaction activity for the year, and lays out the high, average and low blue sky multiples for each franchise in the luxury and non-luxury segments. For more details and to preview the report, click here. To sign up to receive the quarterly report, click here.

Kerrigan Advisors also releases monthly The Kerrigan Index™ composed of the seven publicly traded auto retail companies with operations focused on the US market. The Kerrigan Auto Retail Index is designed to track dealership valuation trends, while also providing key insights into factors influencing auto retail. To access The Kerrigan Index™, click here.

About Kerrigan Advisors 

Kerrigan Advisors is the premier sell-side advisor and thought partner to auto dealers in the US. The firm advises auto dealers nationwide, enhancing value through the lifecycle of growing, operating and monetizing their businesses, as well as offering restructuring and turnaround consulting services. Kerrigan Advisors has had the honor of representing the industry’s largest transactions, including more Top 150 Dealership Groups than any other firm in the industry. Led by a team of veteran industry experts, the firm does not take listings, rather Kerrigan Advisors develops a customized approach for each client to achieve their personal and financial goals. In addition to Kerrigan Advisors’ sell-side advisory and capital-raising services, the firm also provides a suite of consulting services including growth strategies, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate analysis.

Kerrigan Advisors publishes The Blue Sky Report®, which is the auto industry's most comprehensive and authoritative quarterly report of dealership buy/sell activity and franchise values, received by nearly 10,000 industry participants in 35 countries. To register to receive The Blue Sky Report®, click here. Kerrigan Advisors also publishes The Kerrigan Index™, the only monthly report tracking the seven publicly traded auto retail companies. To access The Kerrigan Index™, click here.

Kerrigan Advisors Media Contact:

Melanie Webber (melanie@mwebbcom.com), mWEBB Communications, 949-307-1723

[1] Source: The Banks Report, Automotive News, Kerrigan Advisors’ Research

Orlando-area dealership sold to Morgan Automotive Group, marking the 155th Kerrigan-led dealership sale since 2015

Incline Village, NV – June 8, 2022 – Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented Fuccillo Automotive Group in the sale of Fuccillo Kia of Clermont to Florida’s Morgan Automotive Group, one of the fastest growing and largest private dealership groups in Florida.

With the transaction, Kerrigan Advisors has now sold six Florida dealerships on behalf of the Fuccillo family since December 2019; it’s also the 155th sale led by the firm since 2015. Kerrigan Advisors is the most active auto dealership sell-side advisor in the state of Florida.

Founded over 30 years ago, the Fuccillo Automotive Group built a reputation for friendly service that resulted in a commanding position in the highly sought-after Florida car market. Fuccillo Kia of Clermont, located in the Orlando metropolitan area, is among the most desirable stores in one of the fastest growing markets in the US: Orlando is the 3rd largest metro in Florida, 4th largest in the Southeast, and 22nd largest in the United States -- and among the top areas nationally for job growth, career opportunity, quality of life, and education. Clermont itself is one of the 20 fastest growing cities in the region.

The acquirer, Morgan Automotive Group, is ranked in the top ten by Automotive News in its Top 150 Dealership Groups list, with 53 Florida locations in Tampa, Gainesville, Ocala, Lake City, Jacksonville, Sarasota, Naples, Fort Myers, Brandon, New Port Richey, Orlando, and the surrounding areas.

“Florida dealerships are among the highest volume and most profitable in the nation,” said Gabe Robleto, Vice President of Kerrigan Advisors. “Given that fact, we were humbled to once again advise the Fuccillo family, this time on the Fuccillo Kia of Clermont transaction. We’re proud of the work we’ve done in helping the family monetize over 30 years of dedication, hard work and community investment.”

“Representing the Fuccillo organization again was a real honor,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “Demand for dealerships remains at record high levels given the industry’s robust profitability and attractive business model. Kerrigan Advisors expects 2022 to be at or above 2021’s record level for transactions, as valuations remain high and dealers continue to allocate record amounts of capital to acquisitions.”

Kerrigan also noted that demand for dealerships in Florida is the highest in the nation. One out of every 3 buyers in Kerrigan Advisors’ proprietary buyer database is seeking a dealership in Florida, resulting in blue sky multiples one to two turns higher, as compared to the published national multiples in The Blue Sky Report. Kerrigan also commented that demand for Kia dealerships is on the rise and this transaction reflects the franchise’s increased blue sky multiple in the most recent Kerrigan report.

To contact Kerrigan Advisors, the most active sell-side advisor on larger transactions in the auto retail industry, click here.

Kerrigan Advisors Media Contact:

Melanie Webber (melanie@mwebbcom.com), mWEBB Communications, 949-307-1723

Unprecedented 383 transactions completed in 2021, representing 830 franchises, nearly three times the pre-pandemic average, according to The Blue Sky Report® by Kerrigan Advisors, which predicts blue sky values will continue to hit new records in 2022 as earnings skyrocket in the first quarter, super-charging industry consolidation

Incline Village, NV – April 4, 2022– The auto dealership buy/sell market set new records again in 2021 as the continuing, and transformative, impact of the pandemic drove change across the auto dealership business model, according to the just-released Blue Sky Report by Kerrigan Advisors. Unprecedented dealership earnings and blue sky valuations in 2021, says the report, helped fuel a historic 383 completed transactions in 2021, a 32.5% increase from 2020’s prior record and a 71.7% increase over the 2015-2019 pre-pandemic average[1]. Of note in this pivotal year for the auto industry, the public auto retailers were especially acquisitive, adding 246 dealerships, compared to just 29 in 2020, a shift that, according to the report, indicates a quickening of industry consolidation in the coming years.

Dealership buy/sell activity accelerated throughout 2021, with 158 transactions completed in Q4 alone, more than three times the pre-pandemic fourth quarter average. The transactions completed in 2021 represented 830 franchises, more than in any prior period, with 33% of the transactions representing multiple franchises.

“Auto retail experienced a ‘black swan’ moment in 2020, the results of which continued to transform the industry throughout 2021,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “The pandemic was a catalyst as shrinking new vehicle inventories and rising consumer demand resulted in one of the most extreme supply/demand imbalances in auto retail history. Dealers leveraged their new pricing power while also reducing expenses and enhancing employee productivity, resulting in record dealership profits and dramatically increased operational efficiency. All of which led to the high velocity of dealership transaction activity in 2021.”

According to The Blue Sky Report® by Kerrigan Advisors, auto retail’s systemic transition from a local to a national marketplace, super-charged by the digitization brought on by COVID-19, accelerated consolidation by dealerships looking to expand and scale their businesses. In addition, the move to electrification and Tesla’s proven success with its virtual sales model fast-forwarded auto retail’s shift to a digital sales model – one less reliant on human capital and less dominated by technology. 

“The once ‘impossible’ online vehicle sale became the “possible” as a result of the pandemic,” continued Kerrigan. “This accelerated auto retail’s systemic transition from a local to a national marketplace, the consequences of which will be long-lasting, particularly for private, family-run dealerships. Kerrigan Advisors expects digital retailing, along with OEMs attempts to go direct-to-consumer, will stimulate further industry consolidation into 2022.”

According to the report, although private buyers dominated the buy/sell market, with a 71% share, the most notable move in the 2021 buyer pool was the acquisition activity by the public consolidators who grew their buy/sell market share to 29%, spending a record $9.56 billion in 2021, over 7 times their pre-pandemic average between 2014 and 2019.

The success of the publics’ acquisition strategy is further reinforced by The Kerrigan Index™ of the largest publicly traded auto retailers which traded above 1,000 for 201of 252 trading days last year, with each public hitting an all-time record high stock price during the year. The report notes that with the publics’ stock prices at these elevated levels, more acquisitions are accretive to earnings and thus they increased their capital allocation to acquisitions.

“The activity by the publics in 2021 represented a dramatic about-face and a new record for these companies,” said Ryan Kerrigan, managing director of Kerrigan Advisors. “The pandemic made clear that scale and a national platform will be clear differentiators for auto retailers in the future, particularly with their digital platforms. As a result, these companies shifted their focus from incremental “tuck-in” investments to major group expansion that meaningfully enhanced their geographic reach and added billions in revenue to their topline.”

Another significant buy/sell market change was the reduction in the domestic’s buy/sell market share to 46%, relative to their franchise market share of 66%. By contrast, import franchises saw their buy/sell market share soar to 54%, with Toyota hitting a new high of 7.7% - the highest level ever recorded by an import franchise. Kerrigan Advisors attributes Toyota’s rise to buyer confidence in the OEM’s partnership business model with its dealers, relative to the strained dealer relations with domestic OEMs, such as Ford and GM.

“We are seeing more buyer skepticism about Ford’s and GM’s plans to go direct-to-consumer which may lead to a decline in buyer demand for these franchises in the future. By contrast, the demand for Toyota franchises is as high as we have ever seen it,” continued Ryan Kerrigan. “Buyers believe an investment in a Toyota franchise will last the test of time because Toyota partners with its dealer network. Whatever the future holds, buyers feel very confident it will be a “win/win” for Toyota and its dealers.”

2022 Buy/Sell Trends

Kerrigan Advisors has identified the following three important trends which it expects to meaningfully impact the market in 2022.

·       Buyers base blue sky on projected future earnings, rather than historical norms.

·       OEM electrification plans not factored into 2022 dealership valuations.

·       Expected changes to the legacy auto retail business model drive more sellers to market.

Blue Sky Multiple & Outlook Adjustments

Given the tremendous transformation in auto retail in 2021, and expectations for future changes with electrification and digital retailing, Kerrigan Advisors made several adjustments to its blue sky multiples and multiple outlooks.

“Uncertainty generally creates greater volatility in a business’ valuation and the more uncertain buyers are regarding a franchise’s future earnings, the lower the blue sky multiple they are willing to pay. With this in mind, Kerrigan Advisors downgraded our outlooks on the Chevrolet, Ford, and Buick GMC franchises to negative from steady,” said Erin Kerrigan. “These domestics are flirting with new business models for their vast dealer networks and the unknowns associated with these changes is adding a level of risk to their proforma earnings, which may reduce their multiples in the future.” 

In addition to the changes in the outlook for Ford and General Motors, Kerrigan Advisors made the following changes to the fourth quarter 2021 blue sky multiples.

·       Reduced Chevrolet’s low-end multiple from 3.75 to 3.5, in line with its domestic competitors.

·       Increased Hyundai’s and Kia’s low-end multiples from 3.5 to 3.75 and high-end multiples from 4.5 to 4.75.

·       Increased Nissan’s low-end multiple from 2.5 to 3 and high-end multiple from 3.5 to 4.

·       Increased Porsche’s low-end multiple from 7.5 to 8.

·       Increased Lexus’ low-end multiple from 7 to 7.5.

·       Decreased Audi’s low-end multiple from 7.0 to 6.75 and high-end multiple from 8.0 to 7.5.

Highlights from the Q4 2021 Blue Sky Report® by Kerrigan Advisors include:

·       158 dealership buy/sell transactions were completed in the fourth quarter.

·       383 transactions were completed overall in 2021, a 32.5% increase from 2020’s prior record and a 71.7% increase over the 2014-2019 pre-pandemic average. 

·       A record 126 multi-dealership transactions were completed in 2021, representing 33% of the total market, almost double 2020’s 73 multi-dealership transactions.

·       Import non-luxury franchises increased their buy/sell market share to 36% in 2021, primarily at the expense of the domestics.

·       Domestics reduced their buy/sell market share to 46%, substantially below their franchise market share of 66%.

·       Ford had the highest buy/sell market share of the domestics in 2021 at 11.4%; however, Kerrigan Advisors expects demand for Ford franchises to decrease in 2022.

·       Toyota continued to have the highest import non-luxury buy/sell market share at 7.7%, the most ever recorded for an import franchise.

·       Lexus’ buy/sell market share declined from 3.8% in 2020 to 1.3%, potentially a result of limitations Lexus places on franchise ownership.

·       The largest public dealership groups grew their buy/sell market share to 29% in 2021, increasing their dealership count by 246 in 2021 from 29 in 2020, a dramatic increase from prior years.

·       The publics spent a record $9.56 billion on dealership acquisitions in 2021, 758% more than their pre-pandemic average.

·       Lithia and Asbury acquired 80 and 67 dealerships, respectively in 2021, more than their competing publics.

·       The Kerrigan Index™ surpassed the 1,000 mark in March 2021 and continued in record territory throughout last year. Since March 2020, the Kerrigan Index has outperformed the S&P 500 by nearly 155%.

·       Private buyers continue to dominate the buy/sell market taking 71% market share.

·       2021 was another record earnings year for dealers with average revenue of $70.4 million, and pre-tax profits almost doubling from $2.1 million in 2020 to an impressive $4.1 million in 2021.

·       Average dealership revenue per employee rose to $1.1 million in 2021 compared to $879K in 2019.

·       The publics’ average SG&A as a percentage of gross profit dropped to 61% in 2021, driving record public profitability.

·       Average dealership blue sky and real estate values increased to $22.9 million in 2021, from $19.2 million in 2020. 

The Blue Sky Report®, published by Kerrigan Advisors, is the auto retail industry's most comprehensive and authoritative quarterly report on dealership M&A activity, as well as franchise values. The quarterly report, received by nearly 10,000 industry recipients in 35 countries, includes analysis of all dealership transaction activity for the year, and lays out the high, average and low blue sky multiples for each franchise in the luxury and non-luxury segments. For more details and to preview the report, click here. To sign up to receive the quarterly report, click here.

Kerrigan Advisors also releases monthly The Kerrigan Index™ composed of the seven publicly traded auto retail companies with operations focused on the US market. The Kerrigan Auto Retail Index is designed to track dealership valuation trends, while also providing key insights into factors influencing auto retail. To access The Kerrigan Index™, click here.

About Kerrigan Advisors 

Kerrigan Advisors is the premier sell-side advisor and thought partner to auto dealers in the US. The firm advises auto dealers nationwide, enhancing value through the lifecycle of growing, operating and monetizing their businesses, as well as offering restructuring and turnaround consulting services. Kerrigan Advisors has had the honor of representing the industry’s largest transactions, including more Top 150 Dealership Groups than any other firm in the industry. Led by a team of veteran industry experts, the firm does not take listings, rather Kerrigan Advisors develops a customized approach for each client to achieve their personal and financial goals. In addition to Kerrigan Advisors’ sell-side advisory and capital-raising services, the firm also provides a suite of consulting services including growth strategies, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate analysis.

Kerrigan Advisors publishes The Blue Sky Report®, which is the auto industry's most comprehensive and authoritative quarterly report of dealership buy/sell activity and franchise values, received by nearly 10,000 industry participants in 35 countries. To register to receive The Blue Sky Report®, click here. Kerrigan Advisors also publishes The Kerrigan Index™, the only monthly report tracking the seven publicly traded auto retail companies. To access The Kerrigan Index™, click here.

Kerrigan Advisors Media Contact:

Melanie Webber (melanie@mwebbcom.com), mWEBB Communications, 949-307-1723

[1] Source: The Banks Report, Automotive News, Kerrigan Advisors’ Research

Earnhardt Buick GMC and Earnhardt Mazda of Las Vegas sold to Utah-based Jerry Seiner Dealerships marking the 151st dealership sale led by Kerrigan Advisors since 2015

Incline Village, NV – March 3, 2022 – Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented Phoenix, Arizona-based Earnhardt Auto Centers in its sale of Earnhardt Buick GMC and Earnhardt Mazda in Las Vegas to Utah-based Jerry Seiner Dealerships. Earnhardt Auto Centers is one of the largest, family-owned dealership groups in the US, and was named by Automotive News as the 23rd Largest Dealership Group in the US by 2020 new unit sales. 

“The sale of these stores was not an easy decision for our family, but it was the right one as we increase our focus on our highly successful core group of stores in Arizona. Once again, Kerrigan Advisors not only identified an excellent new owner for the stores, but they also ensured a smooth, harmonious transaction,” said Dodge Earnhardt, President of Earnhardt Auto Centers. “We are very grateful to the Kerrigan Advisors team, especially Erin Kerrigan and Marie Brashears, for their hard work to ensure this sale was a success.”

“It was an honor to represent the Earnhardt family and work with their executive team again,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “We were pleased to identify the right buyer for the Earnhardt’s valuable Las Vegas dealerships. The Jerry Seiner executive team, and owner Chris Hemmersmeier, recognized the value of entering the Las Vegas market with these franchises, and the opportunity the city’s tremendous economic expansion offers for continued sales growth.” 

Las Vegas is fertile territory for automotive dealerships: Nevada’s auto retail market has grown 65% since 2008, and now totals $8.3 billion in overall dealership revenue. Las Vegas is home to 2.3 million people, is the 4th fastest growing MSA by population since 2017 and is one of the fastest growing metros in the US. Furthermore, Nevada is regarded as one of the most pro-business states in the US due to its business friendliness, low taxes and attractive operating costs.

“The Earnhardt dealerships were sold in a very competitive buy/sell landscape where there is high buyer demand particularly in growth markets. Las Vegas is just that – experiencing tremendous expansion, as well as being business-friendly,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “In fact, the Centennial market, where Earnhardt Buick GMC and Mazda Las Vegas are located, is one of the highest volume auto markets in Las Vegas. We are confident the Jerry Seiner group will carry on the Earnhardt’s legacy of success with these franchises.”

Kerrigan Advisors is the most active sell-side advisor on larger transactions in the auto retail industry, achieving the highest sale price per client of any firm over the last five years. The firm attributes its success to its team’s laser-focus on fulfilling each client’s personal and professional goals. In addition to its sell-side advisory work, the firm offers strategic consulting services to dealers and their families, including growth planning, capital raising and valuation analysis, creating value at every stage of the auto retail lifecycle. 

Kerrigan Advisors monitors conditions in the buy/sell market and publishes an in-depth analysis each quarter in The Blue Sky Report®, which includes Kerrigan Advisors’ signature blue sky charts, multiples, and analysis for each franchise in the luxury and non-luxury segments. To download a preview of the report, click here. The firm also releases monthly The Kerrigan Index™ composed of the seven publicly traded auto retail companies with operations focused on the US market. The Kerrigan Auto Retail Index is designed to track dealership valuation trends, while also providing key insights into factors influencing auto retail. To access The Kerrigan Index™, click here. To read the 2021 Kerrigan Dealer Survey, click here. Kerrigan Advisors also is the co-author of NADA’s Guide to Buying and Selling a Dealership.

About Kerrigan Advisors

Kerrigan Advisors is the premier sell-side advisor and thought partner to auto dealers nationwide. The firm advises the industry’s leading dealership groups, enhancing value through the lifecycle of growing, operating and, when the time is right, selling their businesses. Kerrigan Advisors has represented on some of auto retail’s largest transactions and advised more of the largest dealership groups in the US than any other buy/sell firm in the industry. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, the firm does not take listings, rather they develop a customized approach for each client to achieve their personal and financial goals. In addition to Kerrigan Advisors’ sell-side advisory and capital raising services, the firm also provides a suite of consulting services including growth strategy, market valuation assessments, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate due diligence.

Kerrigan Advisors Media Contact:

Melanie Webber (melanie@mwebbcom.com), mWEBB Communications, 949-307-1723

Northridge Toyota and Toyota of Santa Barbara sold to Van Tuyl Companies, Puente Hills Toyota sold to Kaminsky Automotive – marking 149th dealership sale led by Kerrigan Advisors

Incline Village, NV –February 8, 2022 – Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented Hitchcock Automotive in its sale of three high-volume Toyota dealerships in Southern California. 

The sale of Northridge Toyota and Toyota of Santa Barbara to Van Tuyl Companies, and Puente Hills Toyota to Kaminsky Automotive, marks the 149th dealership sale led by the Kerrigan Advisors team since 2015. Kerrigan Advisors, which focuses exclusively on sell-side representation, is the most active sell-side advisor on the highest value transactions in the auto retail industry and has advised on the sale of 17 Toyota dealerships in the last seven years, more than any other firm in the industry.

Hitchcock Automotive has a long and distinguished legacy in southern California. The group was founded in 1971 by industry legend Frederick “Fritz” Hitchcock, who passed away in 2021. Hitchcock began selling Toyotas in 1976, building his Toyota dealerships to some of the top volume stores in their markets. He was a very active advocate in the industry for free trade and lower tariffs. His long record of service included roles as chairman of AIADA's board of directors, who named its Grassroots Leadership Award after him, a co-founder of the Automotive Free International Trade Political Action Committee, president of the California New Car Dealers Association and chairman of the Toyota and Mazda national dealer councils, among many others. 

“These dealerships, in so many ways, represent my dad’s extraordinary legacy. It is a bittersweet moment to announce the sale of the Hitchcock dealerships, as we have been a family business for decades. I am thankful to Kerrigan Advisors for running such a seamless sale process for our family,” said Ted Hitchcock, son of Fritz Hitchcock and Partner of Hitchcock Automotive.

“It was very important to the family that we found the right new owners with the vision to continue our dealerships’ record of excellence, success and service in their communities,” said Howard Hakes, President of Hitchcock Automotive. “When the time came to decide to sell, Kerrigan Advisors was our first call. The firm’s deep experience with the Toyota brand, their intelligence on buyers, ability to quarterback a multi-dealership transaction and their attention to every detail made them the perfect advisors to assist our family.”

“It was a sincere honor to represent the Hitchcock family in this important transaction,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “Fritz Hitchcock was a larger than life presence in auto retail, and he will be long remembered for his commitment to our industry. We wish the Hitchcock family all the best as they transition these highly attractive dealerships to Van Tuyl Companies and Kaminsky Automotive.”

Northridge Toyota and Toyota of Santa Barbara are the highest volume dealerships in their submarkets and represent some of Larry Van Tuyl’s first acquisitions since selling Van Tuyl Group to Berkshire Hathaway in 2014. Puente Hills Toyota, which has been the #1 volume new car dealership in Puente Hills for over 30 consecutive years, will join Honda and Toyota of El Cajon as part of Kaminsky Automotive which is owned by brothers Greg and Gary Kaminsky.

“Toyota is a powerful brand nationwide and particularly in Greater Los Angeles, which is one of the largest car markets in the country. In addition to Toyota’s strong market share, Toyota’s franchises are sought after due to their consistently high profitability and Toyota’s partnership business model with its dealers,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. 

Kerrigan noted that Toyota is consistently ranked as one of the top brands by dealers in the NADA Dealer Survey and by buyers in Kerrigan Advisors’ proprietary buyer database. The brand has also held the #1 spot as the most valuable car brand for seven years running, according to BrandZ’s Top 100 Most Valuable Global Brands. As the top-selling brand in LA County, Toyota boasts six of the top 15 best-selling models in the LA market.

“The Hitchcock Automotive transactions are compelling evidence of Toyota’s brand equity, particularly in Southern California – in fact, Toyota’s LA County market share is 33% higher than Toyota’s national market share, with the highest growth in market share of all brands,” continued Kerrigan. “We are proud to have helped Hitchcock Automotive with a triple sale in this fast-moving buy/sell market and are confident that these dealerships are well-positioned for a future of continued growth and success, consistent with Fritz’ impeccable legacy.”

Legal counsel for Hitchcock Automotive was the Los Angeles automobile dealer law firm Manning, Leaver, Bruder & Berberich who has represented them for over forty years.

Kerrigan Advisors is the most active sell-side advisor on larger transactions in the auto retail industry, achieving the highest sale price per client of any firm over the last five years. The firm attributes its success to its team’s laser-focus on fulfilling each client’s personal and professional goals. In addition to its sell-side advisory work, the firm offers strategic consulting services to dealers and their families, including growth planning, capital raising and valuation analysis, creating value at every stage of the auto retail lifecycle. 

Kerrigan Advisors monitors conditions in the buy/sell market and publishes an in-depth analysis each quarter in The Blue Sky Report®, which includes Kerrigan Advisors’ signature blue sky charts, multiples, and analysis for each franchise in the luxury and non-luxury segments. To download a preview of the report, click here. The firm also releases monthly The Kerrigan Index™ composed of the seven publicly traded auto retail companies with operations focused on the US market. The Kerrigan Auto Retail Index is designed to track dealership valuation trends, while also providing key insights into factors influencing auto retail. To access The Kerrigan Index™, click here. To read the 2021 Kerrigan Dealer Survey, click here. Kerrigan Advisors also is the co-author of NADA’s Guide to Buying and Selling a Dealership.

About Kerrigan Advisors

Kerrigan Advisors is the premier sell-side advisor and thought partner to auto dealers nationwide. The firm advises the industry’s leading dealership groups, enhancing value through the lifecycle of growing, operating and, when the time is right, selling their businesses. Kerrigan Advisors has represented on some of auto retail’s largest transactions and advised more of the largest dealership groups in the US than any other buy/sell firm in the industry. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, the firm does not take listings, rather they develop a customized approach for each client to achieve their personal and financial goals. In addition to Kerrigan Advisors’ sell-side advisory and capital raising services, the firm also provides a suite of consulting services including growth strategy, market valuation assessments, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate due diligence.

Kerrigan Advisors Media Contact:

Melanie Webber (melanie@mwebbcom.com), mWEBB Communications, 949-307-1723