Buy/sell transactions surged 10% YoY in 2024, with 697 franchises sold—highest since 2021; buyer confidence in valuations grew as earnings normalized; Blue Sky multiples strongest among most trusted franchises

Incline Village, NV – March 17, 2025 – The auto dealership buy/sell market delivered another record year of buy/sell activity with 438 completed dealership transactions, up 10% compared to 2023, according to the just-released 2024 Annual Blue Sky Report® by Kerrigan Advisors. For the year, 697 franchises were sold, the highest number since 2021 and a 2.5% increase from 2023. The strength of the buy/sell market in 2024 was largely driven by growing industry confidence in the future of auto retail sales and profitability.

According to the 2024 Annual Blue Sky Report, fourth quarter 2024 automotive sales remained strong, signaling a market with substantial growth potential, and positioning the industry to surpass the prior annual vehicle sales peak of 17.55 million set in 2016, providing trade policies remain favorable. With more than a quarter of a trillion dollars in pre-tax dealership earnings accumulated since the pandemic - much of it sitting idle on balance sheets - Kerrigan Advisors expects the consolidation trend to persist in 2025,

“With interest rates lower, inflation moderating, and vehicle affordability improving, new vehicle sales saw a significant uptick throughout the year, further boosting buyer confidence,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “This confidence grew even stronger post-election, as dealers experienced a sharp rebound in new vehicle sales—clear evidence of pent-up consumer demand after years of constrained supply.”

Contributing to the strength of the buy/sell market is the fact that many dealers view 2024’s lower earnings as the market’s trough, from which future growth can, at last, be projected—an earnings baseline that remains 78% higher than pre-pandemic levels, even when adjusted for inflation. If gross profit per new vehicle retailed stabilizes at 2024 averages, and new vehicle volumes return to historical rates, industry earnings should normalize well above pre-pandemic levels, resulting in more than $40 billion of potential gross profit, projects The Blue Sky Report®. “Given this backdrop, buyers are factoring this growth potential into their dealership acquisitions, driving stronger motivation and greater conviction in blue sky valuations,” continued Kerrigan.

The report also reveals that franchise diversification was critical to a dealership group’s success in 2024 as the auto retail market bifurcated into “have” and “have not” franchises. Strong franchises thrived on low inventories and sustained high gross profit margins, while weaker franchises struggled with ballooning inventories, rising floorplan costs, and falling gross profits. This divergence created a marketplace of winners and losers, clearly reflected in days’ supply of vehicles. For instance, Lexus, Toyota, BMW and Honda who have amongst the highest valuations in the industry, maintained the lowest days’ supply—well below the industry average—whereas Lincoln, Nissan and CDJR, have amongst the highest days’ supply and lowest valuations.

 “Not surprisingly, valuations for underperforming/weaker franchises fell sharply in 2024 as dealer confidence in those OEMs declined,” continued Kerrigan. “Some dealers with struggling franchises faced financial distress for the first time since the Great Recession, leading to an increase in distressed sales and deeply discounted valuations compared to their pandemic highs. With the average dealer owning fewer than three stores, the impact of a weak franchise became harder to absorb.”

This market shift fueled record franchise divestitures, particularly among underperforming brands like CDJR, Nissan and Infiniti. As multi-dealership deals declined year over year, from 32% in 2023 to just 22% of 2024’s buy/sell activity - the lowest share on record – single-point transactions surged and the number of franchises sold per transaction declined to 1.59, a 7% drop from 2023. That said, multi-dealership transactions remained above pre-pandemic levels with 97 completed deals, the third highest on record and a 67% increase over the pre-pandemic average of 58.

Market Consolidation Shifts to Privates, the South Surges and Blue Sky Values are Historically High

The Blue Sky Report® underscores the continuation of the consolidation trend in 2024, with the largest private dealerships in the industry (Automotive News’ Top 150 Dealership Groups) growing at the fastest rates, even as the US public dealer groups remain net sellers of dealerships. In 2024, the Top 150 accounted for more than 30% of industry revenue, representing 28% of the franchises acquired, the highest level on record. These companies also continued to grow revenue per rooftop, which now exceeds the NADA average by 18% or $13.1 million.  

The Southern United States continued to be a stand-out in the regional consolidation trend in 2024 as buyer demand for its high growth, business-friendly markets surged to a new record, now representing the majority of transactions with a buy/sell market share of 51%, a 20% year-over-year increase.

Although they averaged 19% below their 2022 peak, overall, blue sky values remained historically high in 2024, supported by an active and liquid buy/sell market. “Many dealers see 2024 as a valuation inflection point, with blue sky values expected to rebound in 2025, alongside a recovery in industry earnings, and the public markets reflect this outlook,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors.  “As we look ahead to 2025, strong buyer demand and an improving earnings environment suggest the buy/sell market will remain highly active.”

The 2024 Kerrigan Dealer Survey confirms this trend, showing a 258% increase in dealers seeking to sell a dealership compared to 2022, a 16% rise in those looking to grow, and a 12% decline in those planning for no change.

“With valuations poised to rise, we expect another robust year for dealership transactions. As dealers and their families plan for 2025 and beyond, the choice between growth and exit will be front and center—while inertia appears to be a less viable strategy in the evolving market,” continued Ryan Kerrigan.

2025 Buy/Sell Trends

In the 2024 Annual Blue Sky Report, Kerrigan Advisors identified the following three important trends that are expected to meaningfully impact the auto retail market in 2025.

-      Dealership Real Estate Values Remain High, Buoying Dealership Enterprise Values

-      OEMs Exercise Their Right of First Refusal at an Increasing Rate

-      Chinese OEMs’ Growing Global Market Share Could Eventually Impact US Blue Sky Values

Dealership Real Estate

Dealership real estate values are having a profound impact on the buy/sell landscape in 2025: strong retail sales and elevated construction costs are sustaining high dealership property valuations as demand outpaces supply. Kerrigan Advisors estimates that, since 2014, dealership real estate values have risen 51% to $13.9 million on average, increasing real estate’s share of total transaction values.

“While blue sky values have declined about 19% from their 2022 peak, rising real estate valuations have offset this drop, keeping total dealership enterprise values near record levels in 2024,” said Ryan Kerrigan. “This trend highlights the critical role of dealership real estate in a dealer’s decision to sell and their total after-tax proceeds.”

OEM ROFRs

OEMs record number of right of first refusals (ROFRs) in 2024 continues a trend that began in 2022 when blue sky values peaked. ROFR activity historically correlates with buy/sell volume—higher transaction levels boost OEM confidence in securing alternative buyers, prompting more frequent ROFR use. As ROFRs rise, dealer trust in OEMs is eroding. The 2024 Kerrigan Dealer Survey found that 25% of respondents reported “no trust” in their OEM, up 19% from 2023, while moderate and high trust levels declined. This growing disconnect highlights rising friction in the franchise system, as consolidation accelerates and OEMs exert greater control over dealership ownership and network composition.

Growing Chinese Global Market Share

China is redefining the global automotive landscape. It surpassed the US as the world’s largest auto market in 2009 by 3.1 million in annual light vehicle sales and has maintained the top position in vehicle sales ever since, with the variance growing to 13.9 million in 2024.

“Legacy OEMs are feeling the financial impact of losing market share in the world’s largest auto market. Volkswagen, General Motors, Nissan, BMW, and Mercedes-Benz—once reliant on China for 20% to 40% of global sales—are facing accelerating declines in 2024, hitting earnings hard,” said Erin Kerrigan, Highlighting the severity of the shifting competitive landscape, Kerrigan noted that General Motors took a $5 billion restructuring charge in Q4 2024 due to its weakening Chinese business—equivalent to ~70% of its 2024 net income.

Toyota, Kia, and Lexus Multiples Increased

“As OEM-dealer relations continue to evolve, trust will play a defining role in shaping franchise valuations and determining which brands retain their competitive edge in an increasingly complex automotive landscape,” said Erin Kerrigan.

“In fact, we uncovered a strong correlation between a franchise’s dealer trust level and its blue sky multiple. At one end, CDJR has a near-zero trust score and a blue sky multiple just above 3x, while Toyota, with a 83% trust score, has a blue sky multiple of approximately 8x. Franchises that inspire confidence have predictable earnings, making them highly desirable acquisitions for buyers, driving up price. Conversely, franchises plagued by distrust inject uncertainty into financial projections and increase perceived investment risk, resulting in lower valuations.”

For the fourth quarter of 2024, Kerrigan Advisors increased the multiple for Toyota to 7.0x on the low-end and 8.0x on the high-end, as the brand continues to reign supreme in the buy/sell market. Toyota’s strong franchise business model, high level of dealer trust and high franchise profitability, from strong consumer demand and exceptional inventory management, is driving ever higher blue sky multiples.    

Kerrigan Advisors also increased the multiple for Kia to a range of 4.5x to 5.5x due to increased demand for the franchise. This high demand results from its sustainably high dealership profitability post-pandemic and growing buyer demand (nearly a quarter of dealers surveyed in the 2024 Kerrigan Dealer Survey seek to add Kia, ranking 4th amongst all franchises). Kia also had the fourth highest trust level amongst non-luxury franchises in the 2024 Kerrigan Dealer Survey.

In the luxury segment, Kerrigan Advisors increased the high-end of Lexus’ blue sky multiple from 8.5x to 10x this quarter as demand for Lexus franchises continues and dealer relations strengthen, resulting in high trust with the OEM. Lexus commands the highest blue sky multiple of any franchise in the industry due to the scarcity of points available for purchase, coupled with the highest buyer demand in the luxury segment. 70% of dealers surveyed by Kerrigan Advisors have a high level of trust in Lexus due to its superior business model (high UIO count, high sales per franchise, superior gross profits).

CDJR, Nissan, Audi and Volvo Multiples Decreased, Volvo’s Outlook Reduced

In the fourth quarter, Kerrigan Advisors downgraded CJDR and Nissan. Both non-luxury franchises’ blue sky multiples have been reduced to 2.5x to 3.25x due to very weak franchise financial performance in 2024, a lack of trust in their OEMs and high buyer avoidance. Nissan’s economic future remains in question; however, the right business partner/merger could strategically launch the company into a prosperous and more predictable future, which would have a meaningful impact on future blue sky values. 

Kerrigan Advisors also downgraded blue sky multiples for luxury franchises Audi and Volvo. Audi’s blue sky multiple range was reduced by 0.5 on the high end and 0.25 on the low end this quarter, to 6.5x – 7.0x as it experienced the steepest sales decline in the luxury segment in 2024. Likewise, Kerrigan Advisors reduced Volvo’s blue sky multiple on the high end from 4.0 to 3.5, and the brand’s outlook was changed to negative given Volvo’s rising inventories and declining dealer profitability. Volvo sales declined in 2024, with the OEM’s significant investment in EVs calling into question the franchise’s future product pipeline and its suitability to the US consumer.  

 “In the face of potential import tariffs if the Trump administration proceeds with its plans, 2025 blue sky multiple expectations face some uncertainty. Tariffs on all auto imports, including parts from Mexico and Canada, will drive up vehicle costs, impacting OEMs, dealers, and consumers. For dealers, higher costs, supply chain disruptions and reduced affordability would likely lead to margin compression. While the impact will vary by franchise, most dealers expect the risk to either not materialize or to be mitigated by OEMs who may absorb a significant portion of the cost,” concluded Ryan Kerrigan.

Highlights from the 2024 Annual Blue Sky Report® by Kerrigan Advisors include:

·        438 dealership transactions were completed for the full year 2024, a 10% increase over 2023’s previous record high. There were 234 transactions in the second half of 2024 alone – close to 2021’s record 239.

·        697 franchises were sold in 2024, the second highest number on record.

·        The number of multi-dealership transactions declined to 97 transactions representing 22% of all transactions completed, compared to 32% in 2023 and 126 transactions. This still represented the third highest number of multi-dealership transactions on record.

·        The domestics represented 41% of the buy/sell market in 2024, losing 7% share to the import luxury market and 6% share to the import non-luxury market.

·        In 2024, the US public dealer groups were net sellers of dealership, divesting a record 47 franchises, 18 more than they acquired, representing a 0.6 acquisition-to-divestiture ratio – the lowest ratio since 2015.

·        The US public dealer groups ended the year at a blue sky multiple 7.7x below the top luxury average multiple of ~8.5x, but above the top non-luxury average of ~6.5x, improving acquisition prospects and making them more accretive to EPS.  

·        51% of the acquisitions in 2024 were in the South, a 20% increase from 2023. Both the Midwest and Northeast regions saw their share shrink to 23% and 11%, respectively.

·        30% of the US public dealer groups total invested capital went to international and other acquisitions —the highest share recorded. Capital invested toward US acquisitions fell to 22% from 37% in 2023.

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 over 12,000 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.

About Kerrigan Advisors

Kerrigan Advisors is the leading sell-side advisor and thought partner to auto dealers nationwide. Since its founding in 2014, the firm has led the industry with the sale of over 285 dealerships generating more than $9 billion in client proceeds, including two of the largest transactions in auto retail history – the sale of Jim Koons Automotive Companies to Asbury Automotive Group and Leith Automotive to Holman. 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. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, Kerrigan Advisors is the only firm in auto retail exclusively dedicated to sell-side advisory, providing its clients the assurance of a conflict-free approach.   

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 read the 2024 Kerrigan Dealer Survey, click here. To read the 2024 Kerrigan OEM Survey, click here. Kerrigan Advisors also is the co-author of NADA’s Guide to Buying and Selling a Dealership.

Kerrigan Advisors Media Contact:

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

Transaction marks Kerrigan Advisors’ 286th dealership sold, 21st franchise sold in the Northeast region and 37th Toyota franchise sold since inception.

Sale of highest volume dealership in Greensburg, PA, underscores growing success of Pittsburgh market, where Toyota is the top volume import franchise.

Pittsburgh, PA – February 24, 2025 – Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented Ascent Automotive Group in the sale of its Toyota of Greensburg, Pennsylvania dealership, in the Pittsburgh metropolitan area, to Jim Shorkey Auto Group. Ascent Automotive Group is part of The Friedkin Group, a privately held and diverse family of brands and investments in the automotive, luxury, hospitality, and entertainment industries, including Gulf States Toyota. Pittsburgh-based Jim Shorkey Auto Group, founded in 1974, is a family-owned dealership group with 17 stores across the Northeast. The sale represents Kerrigan Advisors’ second Toyota franchise sold this year, and its 286th dealership, 37th Toyota franchise, and 21st franchise in the Northeast sold since inception.

"We are delighted to announce the successful completion of this transaction for Ascent Automotive, having identified the ideal buyer in Jim Shorkey Auto Group that is well-positioned to uphold the strong legacy that The Friedkin Group has built for Toyota of Greensburg,” said Ryan Kerrigan, Managing Director at Kerrigan Advisors. “Under their leadership, we have no doubt that Greensburg’s highest-volume dealership will continue to thrive and serve the community with the highest level of dedication to customer service."

Ascent Automotive Group, part of The Friedkin Group since 2004, operates six dealerships, including Toyota of Greensburg, and represents Lexus and Subaru dealerships in Nevada and Ohio. Ascent Automotive acquired Toyota of Greensburg in October 2011 and won the Toyota President’s Award for six consecutive years from 2017-2023. The dealership represents Toyota in the Pittsburgh metro area in the prosperous Southeast suburb of Greensburg.

Home to 2.4 million residents and the second-largest metro in Pennsylvania, Pittsburgh’s population has increased by 4.5% since 2019—125% above the national growth rate, fueled by $3.7 billion in investments from local and national corporations, 13 Fortune 1,000 companies, a highly skilled workforce, and over 145,000 students enrolled across 29 colleges and universities. Recognized for its quality of life, affordability, and pro-business climate, Pittsburgh ranked #2 for international business by the Financial Times in 2024 and was named the 9th best city for working parents by The Huffington Post in 2023. Additionally, Greensburg serves as a key retail hub for the region, featuring the Westmoreland Mall, a newly opened casino, 22 automotive franchises, and an affluent population that spends 4.2 times the U.S. average on retail sales annually.

Toyota is the top volume import franchise in the Pittsburgh market and continues to lead the automotive industry, achieving 15% sales growth in 2024, the highest among all volume import franchises. Toyota has led all brands—luxury and non-luxury—in sales per franchise for over 15 years, resulting in the highest number of units in operation per franchise at 30,000. Toyota significantly outperforms several global and domestic competitors and is, by far, the most-requested brand in Kerrigan’s Buyer Database and in the 2024 Kerrigan Dealer Survey.

"Not surprisingly, Toyota franchises are among the most sought after in the industry. Their effective inventory management, strong dealer-OEM partnerships, robust fixed operations, and consistent profitability make them extremely desirable in the current market," said Erin Kerrigan, Founder & Managing Director of Kerrigan Advisors. "This is borne out not only in our annual Kerrigan Dealer Surveys, but also by the number of Toyota franchises Kerrigan Advisors has represented since our inception. With 37 dealership sales – and two in just the last month – we are proud to be the most experienced Toyota franchise sell-side advisor in the industry. It has been a tremendous privilege to partner once again with The Friedkin Group to bring this transaction to such a successful close." 

About Kerrigan Advisors

Kerrigan Advisors is the leading sell-side advisor and thought partner to auto dealers nationwide. Since its founding in 2014, the firm has led the industry with the sale of over 280 dealerships representing over $9 billion in client proceeds, including the third largest transaction in auto retail history – the sale of Jim Koons Automotive Companies to Asbury Automotive Group. 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. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, Kerrigan Advisors does not take listings, rather they develop a customized sales approach for each client to achieve their personal and financial goals. In addition to the firm’s sell-side advisory services, Kerrigan Advisors also provides a suite of consulting and investor services including growth strategy, market valuation assessments, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate due diligence.

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 2024 Kerrigan Dealer Survey, click here. To read the 2024 Kerrigan OEM Survey, click here. Kerrigan Advisors also is the co-author of NADA’s Guide to Buying and Selling a Dealership.

Kerrigan Advisors Media Contact:

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

Sale of top volume Toyota dealership in Slidell is final sale of four Bohn family dealerships; marks Kerrigan Advisors’ 285th dealership sold, 134th franchise sold in the Southern region and 50th Toyota/Lexus franchise sold since inception

New Orleans, LA – January 20, 2025 – Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented New Orleans-based Bohn Brothers Automotive Group in the sale of its Toyota of Slidell dealership to Tennessee-based Carlock Automotive. This represents the sale of the final of four dealerships in the Bohn Brothers Automotive Group, including Audi of New Orleans, Audi Lafayette, Hyundai Genesis of Metairie and Toyota of Slidell.

 “We are delighted to announce the successful completion of the final of four transactions we have advised on for the dealership group owned by the Bohn Brothers,” said Gabe Robleto, Senior Vice President of Sell-Side Advisory at Kerrigan Advisors. “It has been a privilege to work with the Bohn family throughout this process, and we deeply appreciate the trust they placed in us to help guide such an important transition. We are confident that the dealership will thrive under the leadership of Carlock Automotive. This acquisition marks an exciting new chapter for Carlock as they expand into Louisiana with their first dealership in the state. The legacy of the Bohn Brothers is in excellent hands, and we look forward to seeing the continued success of Toyota of Slidell under its new ownership.”

Founded by George W. Bohn in 1924, the Bohn Brothers Automotive Group opened its first store as a Ford dealership on South Broad Street in New Orleans. The third generation of the family expanded adding Toyota, Audi, Buick, Pontiac Hyundai Genesis and GMC truck dealerships. They sold those dealerships in 2000 except Toyota of Slidell, and in 2009 Donny, Scott and Van Bohn added Audi New Orleans, Audi Lafayette and Hyundai Genesis of Metairie.

 “It is a bittersweet moment for our family as we step away from the business after more than 100 years of serving the New Orleans community,” said Donny Bohn, Co-Owner of Bohn Brothers Automotive Group. “Our partnership with Gulf States Toyota since 1987 has been a cornerstone of our journey, and we are profoundly grateful for the opportunity to be part of such a storied legacy. We also want to extend our heartfelt thanks to Gabe Robleto and the entire team at Kerrigan for their extraordinary effort and commitment throughout this sales process. From identifying the ideal buyer for Toyota of Slidell to ensuring the best outcomes from every transaction, Kerrigan Advisors’ professionalism, expertise, and dedication were second to none. They made a complex process feel seamless and ultimately successful.”

Over the course of a few months the Bohn brothers have now fully exited the dealership business with the final sale of Toyota of Slidell. Toyota of Slidell is Slidell’s second highest volume dealership and is strategically located on the desirable Slidell auto row off I-10, a major East-West Interstate connecting Florida to California.

“We also want to take a moment to express our deepest gratitude to our exceptional employees, whose hard work and loyalty have been the backbone of our success for generations. To the community that has supported us so steadfastly over the years, thank you for placing your trust in us and allowing us the privilege to serve you. It has been an honor to be a part of your lives, and we take immense pride in the legacy we leave behind,” concluded Bohn.

New Orleans is the economic powerhouse of Louisiana, bolstered by strong economic growth projections for the next five years. This growth is driven by the presence of major corporations, renowned higher education institutions, a robust healthcare sector, and a business-friendly environment characterized by low operational costs. The city's thriving economy is complemented by a growing and diverse workforce, supported by a metropolitan population of approximately 1.2 million residents. The city is also home to several professional sports teams, providing year-round excitement for sports enthusiasts.

Recognized as the most trusted brand in the 2024 Kerrigan Dealer Survey, Toyota is also a top selling brand in New Orleans with a market share exceeding US averages by 18%. Nationally, Toyota’s light vehicle sales increased 4.2% in 2023, accounting for 12.3% of market share. In December 2023, the franchise had days’ supply of 34, well below the US average of 70 days.

“Toyota continues to be the most requested brand by auto dealership buyers. The OEMs measured approach to EVs, robust dealership profitability, strong product lineup and high throughput per franchise, measured by sales and units in operation, makes it very attractive to dealership buyers nationwide and particularly in the South, where Toyota commands strong market share,” said Erin Kerrigan, Founder & Managing Director of Kerrigan Advisors. “We are deeply grateful for the opportunity to work with the Bohn family on this final and important transaction in the sale of their dealership and are thrilled to have found the right buyers, secured optimal values, and completed all four of the transactions seamlessly on the family’s behalf. This transaction is yet another example of the success of Kerrigan Advisors’ sale process in which our entire firm works together to ensure each client’s personal and financial goals are achieved in a once-in-a-generation sale.”

The completion of Bohn Brothers’ Toyota of Slidell transaction represents Kerrigan Advisors’ 285th franchise sold, 50th Toyota/Lexus franchise sold and its 134th franchise sold in the South since inception.

Stephen Dietrich and Brooke Sizer of Holland & Knight served as legal counsel to Bohn Brothers Automotive Group. Crowe LLP was the seller’s accountant.

About Kerrigan Advisors

Kerrigan Advisors is the leading sell-side advisor and thought partner to auto dealers nationwide. Since its founding in 2014, the firm has led the industry with the sale of over 280 dealerships representing over $9 billion in client proceeds, including the third largest transaction in auto retail history – the sale of Jim Koons Automotive Companies to Asbury Automotive Group. 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. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, Kerrigan Advisors does not take listings, rather they develop a customized sales approach for each client to achieve their personal and financial goals. In addition to the firm’s sell-side advisory services, Kerrigan Advisors also provides a suite of consulting and investor services including growth strategy, market valuation assessments, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate due diligence.

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 2024 Kerrigan Dealer Survey, click here. To read the 2024 Kerrigan OEM Survey, click here. Kerrigan Advisors also is the co-author of NADA’s Guide to Buying and Selling a Dealership.

Kerrigan Advisors Media Contact:

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

68% of dealers project valuations will increase, or remain at 2024 levels driving strong interest in acquisitions over the next 12 months; Toyota/Lexus are most trusted among dealers for the second consecutive year, but CDJR faces declining valuations and lowest-ever trust ranking, according to the recently released 2024 Kerrigan Dealer Survey

Incline Village, NV – January 7, 2025 – The majority of auto dealers maintain a positive outlook on the valuation of their dealerships over the next twelve months as profits normalize, according to the newly released 2024 Kerrigan Dealer Survey. The survey, which queried over 635 auto dealers to gather insights on the future value of their businesses, franchise valuations and acquisition trends, revealed that more than half (51%) anticipate that 2024 valuations will remain at elevated levels into 2025, while 17% foresee an increase in valuations.  

With the stabilization of pre-tax earnings, 43% of dealers surveyed view current earnings as a reliable indicator of future performance. This confidence in earnings reflects the normalization of dealership profits experienced by many franchises in 2024 and is the likely driver behind their continued optimism about valuations.

An increasing minority of dealers, 43%, have a more negative outlook on profits than in 2024, with new electric vehicle (EV) sales having the most adverse influence: 77% expect EVs will negatively impact profitability in 2025. By contrast, the vast majority of dealers expect hybrid new vehicle sales (77%) and parts and service (75%) to enhance 2025 earnings. Additionally, nearly half of dealers surveyed expect investment in OEM facilities to negatively impact future profits.

“Despite a moderation in profits, auto dealer sentiment remains upbeat on 2025’s valuations, directly impacting acquisition activity in the coming year,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “As the survey reveals, compared to last year, more dealers are expecting an increase in overall buy/sell activity, with more anticipating adding one or more dealerships to their portfolio in 2025.  This aligns with the industry’s view that scale will be crucial in the evolving auto retail landscape, prompting enterprises to either expand or sell as consolidation continues.”

According to the survey, 49% of dealerships expect to add one or more dealerships in 2025 compared with 47% in 2024, while fewer, 44%, expect no change in the number of dealerships they plan to add or subtract, compared to 47% in 2024. The percentage expecting to sell one or more dealerships has inched up to 7% from 6% in 2024, perhaps reflecting the slight increase in those who have a negative outlook on profits and valuations.

Changing Views on Specific Franchises

While most dealers in the survey believe franchise values will either increase or remain the same over the next 12 months, certain franchises saw a sharp decline in valuation expectations, largely correlated with an oversupply of new vehicle inventory and a significant decline in franchise profitability.

Dealers expect that Lexus, Toyota, Honda, Kia, and Subaru will see the highest gains in valuation over the next 12 months, with over 30% anticipating an increase in their value. This marks the first time Lexus has led the category, while Honda returns to the top five list after being absent last year. However, Kia, which led the category last year, experienced an 11-percentage point decline in dealer expectations and Hyundai, which held the second-highest valuation expectations last year, did not even make the top five.

Over 64% expect CDJR, Infiniti, Lincoln and Nissan to decline in value in the next 12 months. Notably, CDJR and Nissan saw a 20-percentage point increase in the percentage of dealers expecting a decrease in valuation.

Kerrigan Advisors again measured dealers’ trust level in each franchise. Toyota continues to rank #1 by a wide margin, with 83% of dealers showing a high level of trust in the franchise, nearly 3.5x higher than the survey average of 24%. Conversely, 72% of dealers reported they had no trust in CDJR which is consistent with the valuation degradation expectation.

“The ‘no trust’ levels for Stellantis, Lincoln, Infiniti and Nissan are the highest we’ve seen since we first asked this question. For context, the worst result previously recorded by any franchise was Ford at 48% ‘no trust’ – but Stellantis has now reached 72% and Nissan is at 58%,” said Erin Kerrigan.

For the first time in the survey, Kerrigan Advisors asked dealers which franchises they are seeking to add to their enterprise in 2025. The results are consistent with Kerrigan Advisors’ proprietary Buyer Database of more than 1,000 dealership buyers. “Toyota and Lexus are by far the most requested brands in our Buyer Database and in this year’s survey,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “The measured approach the OEM takes to network size, EV strategy and inventory management are highly attractive to dealers today. Dealers are seeking to invest in franchises they trust, and Toyota and Lexus continue to reign supreme in that category.”

“A significant number of dealers will look to acquire dealerships in the year to come, indicating a positive industry outlook overall. Nevertheless, dealers have distinctly varying views on specific franchises, with certain OEMs eliciting a lack of trust and confidence, while others earn a high level of trust and strong profit expectations. Based on these results, Kerrigan Advisors believes 2025 will be a robust year for buy/sell activity with buyers seeking the most trusted brands and continuing to divest of those they find more challenging,” concluded Ryan Kerrigan. 

Notable changes in franchises' expected valuations from the 2024 Kerrigan Dealer Survey:

·        Honda ranked as the #2 brand among dealers looking to add a franchise in 2025, with nearly one-third of respondents selecting it, and was also recognized as the most improved brand in 2024 for valuation increase expectations, rising by 14 percentage points.

·        Toyota/Lexus secured the top spot as the most trusted OEM by dealers. Toyota leads the industry in trust, with 83% of respondents reporting a ‘high level of trust’ in the OEM, supported by its stronger buyer demand. Lexus achieved the second-highest year-over-year increase in trust for 2024, with a 16-percentage point increase in dealers reporting a ‘high level of trust’. 

·        Ford, after ranking as the least trusted franchise by dealers in 2023, saw a marked improvement in 2024 increasing 11 percentage points and is now ranked the fifth least trusted franchise.

·        CDJR now ranks as the most likely brand to decline in value in 2024, with 76% of respondents predicting a decline and only 5% expecting an increase, matching Nissan for largest increase in valuation decline.

·        Nissan ranked the second least sought-after non-luxury franchise by today’s buyers, with just 10% looking to add the franchise in 2025, and for the second consecutive year it ranked the second least trusted non-luxury OEM and third overall – just after Infiniti.

·        Hyundai went from the second most likely franchise to increase in value in 2023 to #7 in 2024, the largest ranking decline in the import non-luxury segment, with 28% of dealers expecting a decline in the Hyundai franchise value in 2025, a 12-percentage point jump from 2023.

Methodology

The data for The Kerrigan Dealer Survey was gathered from Kerrigan Advisors’ annual survey of auto dealers in conjunction with the issuance of The Blue Sky Report. The Kerrigan Dealer Survey is based on over 635 anonymous responses from franchised auto dealers in Kerrigan Advisors’ proprietary dealer database. Responses were collected from June 2024 to November 2024. 

·        To download the full Kerrigan Dealer Survey report, click here.

·        To download a preview of The Blue Sky Report®, published by Kerrigan Advisors, click here. 

·        To access The Kerrigan Index™, click here.

About Kerrigan Advisors

Kerrigan Advisors is the leading sell-side advisor and thought partner to auto dealers nationwide. Since its founding in 2014, the firm has led the industry with the sale of over 225 dealerships representing more than $7 billion in client proceeds, including the third largest transaction in auto retail history – the sale of Jim Koons Automotive Companies to Asbury Automotive Group. 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. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, Kerrigan Advisors does not take listings, rather they develop a customized sales approach for each client to achieve their personal and financial goals. In addition to the firm’s sell-side advisory services, Kerrigan Advisors also provides a suite of consulting and investor services including growth strategy, market valuation assessments, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate due diligence.

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 2024 Kerrigan Dealer Survey, click here. To read the 2023 Kerrigan OEM Survey, click here. Kerrigan Advisors also is the co-author of NADA’s Guide to Buying and Selling a Dealership.

Kerrigan Advisors Media Contact:

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

Sale of New Orleans’ #1 dealership marks Kerrigan Advisors’ 282nd dealership sold, 132nd franchise sold in the Southern region and 69th luxury franchise sold since 2014; sale underscores trend of largest auto groups acquiring higher volume dealerships, as reported in Kerrigan Advisor’s Third Quarter 2024 Blue Sky Report®

New Orleans, LA – December 13, 2024 – Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented New Orleans-based Bohn Brothers Automotive Group in the sale of its Audi New Orleans dealership, the #1 Audi dealership in Louisiana, to Charlotte, NC-based Sonic Automotive Group (NYSE: SAH), one of the largest automotive retailers in the United States.

“We are pleased to have completed our second transaction with Bohn Brothers, and their second luxury franchise in New Orleans’ most desirable automotive market, Metairie,” said Gabe Robleto, Senior Vice President, Sell-Side Advisory at Kerrigan Advisors. “It was an honor to represent the Bohn family in the sale of their top luxury franchise and to support its smooth transition to Sonic Automotive, marking the establishment of Sonic’s first franchised dealership in the state of Louisiana.”

Bohn Brothers Automotive Group was founded in 1924 and, over the years, the group has expanded its footprint operating Audi New Orleans, Audi Lafayette (previously), Toyota of Slidell and Hyundai Genesis of Metairie. Audi of New Orleans is ideally located off the heavily trafficked North Causeway Boulevard near Lake Pontchartrain, a major New Orleans retail area with state-of-the-art real estate. A Magna Society award-winning dealership, Audi New Orleans, commands 1/3 of Audi’s market share in the state, contributing significantly to New Orleans’ strong share of the national Audi market, which it exceeds by 16%.

“Thank you to Gabe Robleto, and the entire team at Kerrigan Advisors, for their outstanding professionalism as they once again provided us with such sterling support throughout this transaction, and for their expert assistance in helping facilitate the transition to the Sonic team. Kerrigan Advisors proved once again that they are the best in the business,” said Donny and Scott Bohn, Co-Owners of Bohn Brothers Automotive Group. “We are also very grateful to our employees and the community for all their support over the years – we know you will be in excellent hands with the world class team at Sonic.”

With a population of 1.2 million, New Orleans is Louisiana's largest and most significant metropolitan area. It boasts a vibrant historic downtown, the iconic French Quarter, and is home to several professional sports teams. It is also a major tourist destination welcoming nearly 18 million visitors in 2023. An economic powerhouse bolstered by the presence of major corporations, top higher education institutions, and a vast network of healthcare institutions, New Orleans is home to a large economy and growing workforce.

“This sale is another example of how the largest dealership groups continue to leverage their strong balance sheets to achieve greater scale through the acquisition of high-volume dealerships, as noted in our Third Quarter 2024 Blue Sky Report,” said Erin Kerrigan, Founder & Managing Director of Kerrigan Advisors. “It was a true privilege to work on a second transaction with Donny, Scott and Van Bohn and to secure the ideal buyer in Sonic Automotive. The Kerrigan team is proud that our customized, confidential sell-side process, coupled with our commitment to superior client service, has once again yielded the best results for our client.”

The completion of Bohn Brothers’ Audi New Orleans transaction represents Kerrigan Advisors’ 69th luxury franchise sold and its 132nd franchise sold in the South since 2014.

Stephen Dietrich and Brooke Sizer of Holland & Knight served as legal counsel to Bohn Brothers Automotive Group. Crowe LLP was the seller’s accountant.

About Kerrigan Advisors

Kerrigan Advisors is the leading sell-side advisor and thought partner to auto dealers nationwide. Since its founding in 2014, the firm has led the industry with the sale of over 280 dealerships representing over $9 billion in client proceeds, including the third largest transaction in auto retail history – the sale of Jim Koons Automotive Companies to Asbury Automotive Group. 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. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, Kerrigan Advisors does not take listings, rather they develop a customized sales approach for each client to achieve their personal and financial goals. In addition to the firm’s sell-side advisory services, Kerrigan Advisors also provides a suite of consulting and investor services including growth strategy, market valuation assessments, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate due diligence.

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 2023 Kerrigan Dealer Survey, click here. To read the 2024 Kerrigan OEM Survey, click here. Kerrigan Advisors also is the co-author of NADA’s Guide to Buying and Selling a Dealership.

Kerrigan Advisors Media Contact:

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

330 buy/sell transactions, representing a record 544 franchises, were completed in first nine months of 2024, according to the Third Quarter 2024 Blue Sky Report® by Kerrigan Advisors, as more sellers came to market to capture historically high blue sky values; nearly doubling pre-covid buy/sell levels, market velocity was also driven by the largest dealership groups seeking greater consolidation and divestitures of weaker franchises

Incline Village, NV – December 10, 2024 – The auto dealership buy/sell market rose to another record high, with 330 dealership transactions completed in the nine months ended September 30, 2024, representing 544 franchises sold, according to the just-released Third Quarter 2024 Blue Sky Report® by Kerrigan Advisors. Up 93% compared to 2019, this market velocity was fueled by more sellers entering the market, as stronger franchises took advantage of historically high blue sky values, while weaker franchises were divested.

“The buy/sell market remained robust in the third quarter, hitting new records as the largest buyers leveraged their strong balance sheets and solid banking relationships to add further scale to their enterprise. At the same time, more sellers entered the market positioned to sell their businesses given the wealth they accumulated since the pandemic and historically high after-tax proceeds expected from a sale,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “Clearly, 2024 is on track to be another peak year for the buy/sell market as the positive outlook for the industry is underscored by the performance of The Kerrigan Index™ which, through November 7th, was up 54% from its 2022 low, and just 17% below its all-time high.”  

Of note in the report is the increased market share for the Top 150 US Dealership Groups reaching 30% of total industry revenue in 2023, up 5% in just five years. At this growth rate, Kerrigan Advisors projects the largest groups will represent the majority of industry revenue by 2043. The accelerating market share growth is due to the largest group’s preference for higher-volume dealerships. Since 2021, the average dealership revenue for the Top 150 Dealership Groups has risen 7% to over $83 million, 16% higher than the industry average, which has stalled at $71 million since 2021.

“If the consolidation rate continues, the Top 150 US Dealership Groups, which now represent nearly one third of total industry revenue, could account for 50% or more of industry sales in the next 20 years, potentially a tipping point for an acceleration in consolidation in the following decades,” continued Erin Kerrigan. “Major consolidators recognize the tremendous growth potential of an increasing supply of dealerships for sale, and are optimistic about their ability to pursue accretive acquisitions, supported by their rising stock prices, long standing banking relationships and the industry’s moderating blue sky values.”

More Sellers Entering the Market Driving Record Activity

A key factor driving record increased buy/sell activity is the stabilization of pre-tax earnings to a ‘new normal’ allowing buyers and sellers greater comfort to use current earnings as a basis for valuations. This improved clarity enhances buy/sell activity as sellers' and buyers' pricing expectations are increasingly aligned. Additionally, more sellers are coming to market as the wealth many of them accumulated during the pandemic enables and, in some cases, accelerates their retirement plans.

“Between 2020 and 2024, Kerrigan Advisors estimates the industry amassed three times the profits achieved in the four years before the pandemic, estimated at $278 billion,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “Burgeoning capital accounts combined with high blue sky values are prompting more dealers, particularly those without a succession plan, to sell their business. This is particularly the case as the next generation considers the responsibility of growing their family business or considering an exit, knowing that inertia is not an option in the rapidly evolving auto retail market.”

While the stronger franchises, such as Toyota, are coming to market to capture historically high values, another trend fueling the rise in sellers is an increase in the number of dealer groups divesting their weaker franchises, reflected in the fact that, year-to-date, the publics divested 36 franchises, a 24% increase from 2023.

Franchises being divested have some of the highest days’ supply in the industry, the most significant declines in dealership profitability and the lowest Kerrigan Advisors blue sky multiples for their corresponding segment. For example, the franchises with the highest buy/sell market share for their respective segments - CDJR (32% domestic buy/sell market share), Nissan (20% import market share) and Infiniti (13% import luxury market share) - also have some of the highest days’ supply and the most declines in dealership profitability.

Third Quarter 2024 Buy/Sell Trends

Kerrigan Advisors has identified the following three trends which it expects to meaningfully impact the buy/sell market into 2025.

·        Expensive image upgrades, particularly for luxury import franchises, prompt more dealers to sell

·        Larger groups’ stronger balance sheets and banking relationships increase their buy/sell market share

·        Buyers less open to new markets, more focused on tuck-in acquisitions and local scale

The negative projected return on investment associated with expensive facility upgrades is a key trend driving more dealers to consider a sale in the near term, and it is bringing more luxury dealers to market. Average dealership rents have risen 32% since 2019, with luxury dealers’ rents increasing at the highest rate since 2020, making the impact of expensive image upgrades particularly pronounced for those franchises.

Second, in 2024, the largest private consolidators with strong balance sheets and banking relationships increased their buy/sell market share to 32%, a 66% increase, and their highest share since Kerrigan Advisors started tracking in 2018. For example, despite recent declines in cash flow, the publics have a near record amount of capital available at $7.15 billion, up 64% from 2019. This liquidity, a result of the build-up of pandemic earrings, is enabling consolidators to take bigger risks and lean into growth through acquisition.

Lastly, during the pandemic, buyers leaned into growth in almost any market, willing to take risks and seek expansion regardless of geography. Today, with gross profits down 13% from their peak, expense reduction and operating efficiency have reemerged as critical components to profitability and a dealership group’s strategic plan.  “With dealers now focused on identifying ways to share costs across their organization and seeking to leverage scale to their advantage, geography, market synergies and the efficiencies available in local and regional consolidation are a primary prerogative for most acquirers,” said Ryan Kerrigan.

Lexus and JLR Multiples Increase

For the third quarter of 2024, Kerrigan Advisors increased the multiple for Lexus to 8.0x on the low-end and 9.5x on the high-end, reflecting the high buyer demand for the franchise as well as Lexus’ impressive performance in maintaining low inventory levels and achieving high profits at its dealerships.    

Kerrigan Advisors also increased the multiple for JLR to a range of 7.0x to 8.0x as demand for JLR franchises remains high with sales up 28.1% year-to-date through September for Land Rover, leading the luxury market in 2024. Additionally, JLR’s gross profit per vehicle is consistently superior as demand for the Range Rover and Land Rover lineup continues to be robust.

Porsche, Lexus, Toyota, Honda, Subaru and Kia’s Positive Outlook Reiterated

Kerrigan Advisors reiterated its positive outlook on Porsche, Lexus, Toyota, Honda, Subaru and Kia. Initial results of Kerrigan Advisors’ 2024 Annual Dealer Survey also support this outlook. Dealers have a high level of trust in these franchises, particularly Lexus, Toyota and Honda, all of which maintain low inventory levels and high average dealership profitability.

“Luxury brands like Lexus and JLR increasingly command higher multiples as they tend to deliver higher profits, and buyers are seeking these lower risk opportunities,” said Ryan Kerrigan. "On the other hand, buyers that are evaluating underperforming dealerships are applying lower-end multiples to their proforma to assess the blue sky value. As a result, blue sky valuations are often falling below pre-pandemic levels, even for franchises that were profitable prior to the pandemic."

Highlights from the Q3 2024 Blue Sky Report® by Kerrigan Advisors include:

·        330 dealership buy/sell transactions were completed for the nine months ending September 2024, representing a record 544 transactions.

·        104 multi-dealership transactions were completed in the first nine months of 2024, representing 25% of the buy/sell market, a decline from 2021’s 33%. Nevertheless, multi-dealership transactions are 79% above pre-pandemic levels.

·        Import non-luxury and luxury franchises’ buy/sell market share increased to record levels, 39% and 18%, respectively, in the first nine months of 2024, whereas the domestics’ buy/sell market share declined to 43% from 54% in the full year 2023.

·        The average US dealership earned an estimated $0.9 million in the third quarter of 2024, down just 3% from the prior quarter as pre-tax earnings have stabilized at more sustainable levels.

·        The publics divested 36 US franchises in the first nine months of 2024, a 24% increase from 2023 and nine more than they acquired.

·        Average gross profits on new vehicles retailed for the US publics declined to $3,515 in the third quarter of 2024 compared to $3,794 in the second quarter, continuing a trend towards normalization.

·        The publics’ spending on stock buybacks declined to 17% of capital allocation from a high of 51% in 2022, as spending on international and other acquisitions rose from 8% in 2022 to an all-time high of 32% year-to-date 2024.

·        The US public dealer groups’ blended average blue sky multiple reached 6.5x in the third quarter, a 124% increase from 2022’s lows.

·        The Kerrigan Index was up 54% from its low in 2022, through November 7th, and sits just 17% below its all-time high on September 29, 2021, demonstrating Wall Street’s positive outlook for the buy/sell market.

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 over 11,000 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.

About Kerrigan Advisors

Kerrigan Advisors is the leading sell-side advisor and thought partner to auto dealers nationwide. Since its founding in 2014, the firm has led the industry with the sale of over 280 dealerships generating more than $9 billion in client proceeds, including the third largest transaction in auto retail history – the sale of Jim Koons Automotive Companies to Asbury Automotive Group. 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. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, Kerrigan Advisors does not take listings, rather they develop a customized sales approach for each client to achieve their personal and financial goals. In addition to the firm’s sell-side advisory services, Kerrigan Advisors also provides a suite of consulting and investor services including acquisition and expansion strategies, valuation assessments and benchmarking, open point proposals and real estate advisory.

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 2023 Kerrigan Dealer Survey, click here. To read the 2024 Kerrigan OEM Survey, click here. Kerrigan Advisors also is the co-author of NADA’s Guide to Buying and Selling a Dealership.

Kerrigan Advisors Media Contact:

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

204 transactions, representing a record 381 franchises, were completed in the first half of 2024, according to the Second Quarter 2024 Blue Sky Report® by Kerrigan Advisors; activity was largely driven by an increase in sellers seeking to capture strong blue sky values and well-capitalized buyers

Incline Village, NV – September 9, 2024 – The auto dealership buy/sell market experienced an all-time record in the first half of 2024, with 204 completed dealership transactions representing 381 franchises sold, according to the just-released Second Quarter 2024 Blue Sky Report® by Kerrigan Advisors. At this rate, transaction activity is nearly double pre-pandemic levels and annualizing at 760+ franchises sold, a new industry milestone.

This heightened activity was largely driven by an increase in sellers coming to market seeking to capture historically strong blue sky values, which remain above pre-pandemic levels for most franchises, up on average 74% according to The Kerrigan Blue Sky Index. Present and future technology and data management challenges, particularly after the CDK cyberattack, are leading more dealers to consider a sale in the near term. These sellers are met by very well-capitalized buyers, driving the velocity of second quarter’s buy/sell market.

“The 2024 buy/sell market remains robust, hitting new records as industry consolidation continues unfazed by high interest rates, the market headwinds of low vehicle affordability and anemic EV sales,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “Consolidators still flush with cash from pandemic earnings and current cash flow are getting deals done with sellers looking to lock in today’s elevated values and avoid the potential risk of further valuation degradation.”

Kerrigan noted that for most franchises, dealership sellers recognize current blue sky prices are highly attractive on a historical basis, though down on average 17% from their peak. This reduction is largely a result of the sustained decline in industry earnings since 2022. On a trailing twelve month basis through June 2024, the publics’ average dealership earnings dropped 35% compared to 2022’s peak, resulting in average dealership earning of $4.4 million. Adjusting for the one-time impact of the CDK outage, Kerrigan Advisors estimates dealership earnings are beginning to stabilize, approaching a more normalized post-pandemic level that is nearly double pre-pandemic averages.

Buyers Seeking High Quality, Low Risk Franchises

With earnings normalizing and continued strong cash flow generation, the top consolidators have amassed record amounts of liquidity since the pandemic. By way of example, the publics currently have access to $7.4 billion of capital, up $370 million from the first quarter of 2024. Despite earnings stabilization and record liquidity in the market, buyers are more selective on franchises and locations, and are increasingly flocking to the highest quality, lowest risk franchises, often paying a meaningful premium for top franchises in high-demand markets. By contrast, weaker franchises, especially those with declining sales and ballooning inventory, are experiencing tepid buyer demand and a shrinking share of buyer capital.

“The more than 100 days’ supply chasm between the top and bottom franchises is separating the buy/sell market into the haves and have nots,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “Additionally, buyers are increasingly focused on the potential negative impact of OEMs’ EV strategies and are hesitant to invest in manufacturers who are overcommitted to EV production. Toyota and Lexus, who have projected the lowest level of EV production at 18%, remain the most sought-after franchises today.”

Second Quarter 2024 Buy/Sell Trends

For the second quarter of 2024, Kerrigan Advisors identified the following four trends that the firm expects will impact the buy/sell market into 2025:

·        Publics deploy more capital outside the US due to attractive international pricing

·        OEMs play an increasingly active role in managing their networks and buy/sells

·        Acquisition financing contracts for weaker franchises

·        Technology challenges lead more dealers to consider a sale in the near term

Kerrigan Advisors has observed OEMs taking a more active and, in some cases, aggressive role in the buy/sell process and dictating the explicit makeup of their dealer network deploying right of first refusals (“ROFRs”) at an increasing rate.

“We’ve seen some OEMs brazenly attempt, unsuccessfully, to employ a ROFR in states where the tactic is explicitly disallowed by franchise law,” said Erin Kerrigan. “The OEM’s goal is often to supplant a seller’s selected buyer with a designated, favored dealer, resulting in further concentration of dealership ownership in the hands of the most dominant industry consolidators. This does not enhance the diversity of an OEM’s network. Most troubling, in some cases OEMs are deciding to ignore franchise laws in a buy/sell, a highly concerning precedent which emboldens other OEMs eschew auto retailers’ hard-fought legal protections meant to preserve a dealer’s blue sky market value.”

In many regards, this shift in OEM mentality is a byproduct of Tesla’s initial retail success with the direct-to-consumer model and their exclusive ownership of the customer relationship and data. In Kerrigan Advisors 2024 OEM Survey, 19% of OEMs surveyed plan to exclusively own the customer relationship and data in five years, a 16% increase from 2023, while just 14% expect dealers to retain sole ownership, a dramatic shift from historical precedent, when the dealers owned the customer facing relationship.

“Though OEMs have largely abandoned the agency model concept, some are attracted to the idea of a consolidated retail network with more standardization and greater retailing control of the customer experience,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. 

Kerrigan Advisors has also noted a trend in the contraction of bank lending to US corporations as a percentage of overall US GDP as loan terms become more onerous, significantly impacting commercial real estate and acquisition financing. Lending standards are becoming more challenging for certain franchises as lenders analyze the risk of higher inventory levels and slower sales rates.

Lastly, Kerrigan Advisors expects implementation of technology in the sale process and the need for data-driven retailing operations will lead to more dealers considering a sale in the near term. For many of the largest dealer groups, technology in retailing can dramatically increase employee productivity and ultimately enhance profitability. But private dealers lack a sufficiently large enough organization and staff to develop and deploy their own proprietary technology solutions. This, combined with the recent CDK global cyberattack and its significant operational repercussions have added further stress to the technology challenges faced by private dealers, prompting some to consider a sale.

 “Some dealers choose to sell rather than reengineer their business toward a digital future as they recognize the need for a larger organization with the scale to hire an entire IT team, including a top-level executive focused on deploying data to enhance sales. Lower revenue operations will inherently struggle to compete in an increasingly data-driven industry,” continued Ryan Kerrigan.

Mazda Multiple Increased, CDJR and Nissan Multiples Decreased

For the second quarter of 2024, Kerrigan Advisors made three blue sky multiple adjustments, increasing the blue sky multiple for Mazda and decreasing the multiples for CDJR and Nissan.

Kerrigan increased Mazda’s high-end blue sky multiple to 3.75 from 3.5 due to improved buyer sentiment of the brand. Mazda continues to gain market share with well-designed products and the support of its ongoing captive relationship with Toyota Financial Services. While its current days’ supply of inventory is above market, Mazda is focused on supporting its dealers to increase sales and subsequently reduce days’ supply. The brand’s sales target for 2024 was revised up to 450,000, an impressive 24% increase from its 2023 sales of 363,000. Most importantly, sales per franchise have risen steadily since 2019 and hit a record level through the trailing twelve months as of June 2024.

In the case of CDJR, Kerrigan Advisors reduced the franchises’ blue sky multiples on the high-end to 3.5 and on the low-end to 2.5. Some lenders are currently unwilling to finance CDJR acquisitions and dealers are beginning to terminate the franchise, in part due to the exploding inventory carrying cost. As further evidence of CDJR’s declining blue sky value, Asbury Automotive Group has taken impairment charges against many of its CDJR franchises in 2024.

Kerrigan Advisors also reduced Nissan’s blue sky multiple this quarter on the low-end to 2.5. Demand for the Nissan franchise continues to decline due to steeply-reduced profits and poor product offerings. According to Automotive News, Nissan dealers’ return on sales has declined to 1% from 2.3% last year and net profit has declined 70%. The franchise is also considered over-dealered with a declining sales per dealership.  

Kerrigan Advisors’ Franchise Multiple Outlooks Upgraded for Honda and Ford, Reduced for Mercedes-Benz and Hyundai

For the second quarter of 2024, Kerrigan Advisors upgraded its outlook for Honda from Steady to Positive and Ford’s outlook to Steady from Negative.

Demand for Honda franchises is on the rise as sales per franchise rebounds and inventory production remains disciplined. Also, fewer buyers are concerned about Honda’s EV partnership with Sony given weak EV market demand. In the case of Ford, the OEM has acknowledged its overly optimistic projections on EV sales and rolled back the Model E dealer requirements. Ford sales are outperforming the other domestic franchises in 2024, and buyers are showing more interest in the franchise, which could result in an increased blue sky multiple, particularly if inventory days’ supply improves from its currently high levels.

Kerrigan Advisors also lowered its outlook for both Mercedes-Benz and Hyundai to Negative from Steady. Mercedes’ EV products are struggling in the marketplace, resulting in high inventory levels and low margins. Amongst the top luxury franchises, Mercedes has the highest overall days’ supply of vehicles (33% higher than BMW and 159% higher than Lexus). Mercedes’ declining luxury market share is creating a wider lead for Lexus and BMW. In addition, Mercedes-Benz’s decision to take a more aggressive approach to structuring its dealer network, including identifying select preferred buyers and exercising its ROFR is beginning to limit the franchise’s buyer pool and could reduce its blue sky value in the future. Likewise, Hyundai’s aggressive position regarding buy/sell approvals, particularly the OEM’s desire to hand-select preferred dealers in each region, coupled with the franchise’s expensive facility requirements and Hyundai’s higher than average days’ supply, are resulting in lower buyer demand for Hyundai franchises.

Highlights from the Q2 2024 Blue Sky Report® by Kerrigan Advisors include:

·        204 buy/sell transactions were completed through the trailing twelve months as of June 2024, representing 381 franchises, an all-time record for the period.

·        The recently introduced Kerrigan Blue Sky Index, a barometer of industry franchise value, is 74% higher than 2019 levels, though down 17% from 2023.

·        55 multi-dealership transactions were completed in the first half of 2024, representing 27% of the buy/sell market.

·        The Kerrigan Index™ through July 2024 was up 56% from 2022’s low, and sits just 16% below its all-time high, with three of the public US dealer groups (Asbury, AutoNation and Group 1) reaching all-time record market capitalizations in July 2024

·        Import luxury buy/sell market share rose to 40% in the first half of 2024, up from 27% in 2023, and domestic buy/sell market share declined to 44% compared to 2023 full year results of 54%.

·        As of the second quarter of 2024, average front-end gross margins on new vehicles have leveled off, just 3% lower than the first quarter of 2024.

·        94% of the franchises sold in the first half of 2024 were to private buyers who are leading industry consolidation. The largest private groups represented 37% of the buy/sell market, while smaller private groups represented 56%. The US public dealer groups acquired 7% of franchises sold in the first half of 2024.

·        The US public dealer groups’ estimated blended average blue sky multiple has increased 62% in the last four quarters to 6.3x.

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 over 11,000 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 leading sell-side advisor and thought partner to auto dealers nationwide. Since its founding in 2014, the firm has led the industry with the sale of over 275 dealerships representing nearly $9 billion in client proceeds, including the third largest transaction in auto retail history – the sale of Jim Koons Automotive Companies to Asbury Automotive Group. 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. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, Kerrigan Advisors does not take listings, rather they develop a customized sales approach for each client to achieve their personal and financial goals. In addition to the firm’s sell-side advisory services, Kerrigan Advisors also provides a suite of consulting and investor services including growth strategy, market valuation assessments, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate due diligence.

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 2023 Kerrigan Dealer Survey, click here. To read the 2024 Kerrigan OEM Survey, click here. Kerrigan Advisors also is the co-author of NADA’s Guide to Buying and Selling a Dealership.

Kerrigan Advisors Media Contact:

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

Sale of #2 volume Buick GMC dealership in strong auto retail market reinforces continued demand for dealerships in the South; transaction marks Kerrigan Advisors’ 277th dealership sale, 85th since 2020 in the Southern region

MEMPHIS, TN – August 28, 2024 – Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented Memphis, Tennessee-based Sunrise Auto Group in the sale of its remaining dealership, Sunrise Buick GMC Covington Pike, to Memphis-based Jim Keras Automotive. The completion of this transaction represents Kerrigan Advisors’ 277th dealership transaction, including 85 in the Southern region since 2020.

“We are proud to have completed the final sale in Bob Berkheimer’s group of high-performing dealerships,” said Gabe Robleto, Senior Vice President, Sell-Side Advisory at Kerrigan Advisors. “Collaborating with Bob and his team on the sale of all three of his dealerships has been a privilege, and we are gratified that we were able to find the ideal buyer for this final dealership, bringing his legacy with Sunrise Automotive to a successful close.”

Bob Berkheimer founded Sunrise Auto Group more than three decades ago. As a multi-year recipient of GM’s prestigious Mark of Excellence and Dealer of the Year awards, Sunrise is a market leader for Buick GMC in Memphis, which is ranked the third largest metro area in the Southeast and is home to notable Fortune 500 companies including Federal Express, AutoZone and International Paper. Buick GMC Covington Pike is located in Shelby County, which makes up 67% of metro’s population and is the #2 highest volume Buick GMC dealership in Memphis. Jim Keras Automotive Group operates six dealerships across Tennessee and Missouri, representing a range of brands including Chevrolet, Nissan, Subaru and CDJR.

“With the completion of this transaction, I want to thank Kerrigan Advisors for shepherding our group’s entire sale process with great care and attention,” said Bob Berkheimer, President of Sunrise Auto Group. “I also want to extend my heartfelt gratitude to our employees and the Memphis community for their loyalty to our dealerships over the past few decades. I am thrilled we found such a strong fit for our Covington Pike dealership community in Jim Keras Automotive.”

Buick GMC is the premier domestic brand in Tennessee given its strong lineup of nearly a dozen SUVs and trucks and its expected pipeline and boasts strong overall market share in the state. In 2023, Buick GMC was the top performing domestic brand for new unit sales growth and the brand was a top performer in the 2023 Kerrigan Dealer Survey for franchise valuation expectations in 2024.

“We were honored to be chosen by Bob to complete the final sale of the Sunrise Auto Group collection of dealerships,” said Erin Kerrigan, Founder & Managing Director of Kerrigan Advisors. “This transaction marks our 85th transaction in this region since 2020, which reflects a continued regional focus towards the business-friendly, high growth markets in the South. Based on our analysis, we expect the strength in the Southern buy/sell market to continue, and we were proud to support Bob on this highly successful transaction.”

Tennessee’s high-growth status is driven by its business-friendly approach and favorable tax laws. Tennessee’s GDP has surged an impressive 85% since 2010, outpacing the US growth rate by 25%. In 2021, the state achieved a remarkable milestone of 10 years of new business growth, and it ranked #3 in America’s Top States for Business by CNBC. Notably, Memphis residents benefit from a lower cost of living, which attracts residents and businesses to the region.

Stephen Dietrich and Brooke Sizer of Holland & Knight served as legal counsel to the seller. James W. Cameron III and Jonathon D. Mason of Cameron Worley, P.C. served as legal counsel for the buyer.

About Kerrigan Advisors

Kerrigan Advisors is the leading sell-side advisor and thought partner to auto dealers nationwide. Since its founding in 2014, the firm has led the industry with the sale of over 275 dealerships representing nearly $9 billion in client proceeds, including the third largest transaction in auto retail history – the sale of Jim Koons Automotive Companies to Asbury Automotive Group. 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. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, Kerrigan Advisors does not take listings, rather they develop a customized sales approach for each client to achieve their personal and financial goals. In addition to the firm’s sell-side advisory services, Kerrigan Advisors also provides a suite of consulting and investor services including growth strategy, market valuation assessments, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate due diligence.

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 2023 Kerrigan Dealer Survey, click here. To read the 2024 Kerrigan OEM Survey, click here. Kerrigan Advisors also is the co-author of NADA’s Guide to Buying and Selling a Dealership.

Kerrigan Advisors Media Contact:

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

Sale of leading domestic brand in high-growth market highlights ongoing buyer demand in the Southern region; transaction represents the 276th dealership sold by Kerrigan Advisors since inception and 70th franchise sold year-to-date

ATLANTA, GEORGIA– August 13, 2024 – Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented Atlanta-based Asbury Automotive Group (NYSE: ABG) in the sale of Nalley Chevrolet in Union City, a suburb of Atlanta, Georgia, to ALM Automotive Group. This transaction represents Kerrigan Advisors' 276th dealership sold since inception and 70th franchise sold year-to-date.

Asbury Automotive Group is one of the largest automotive retailers in the United States, with $14.8 billion in revenue reported in 2023 derived from 155 dealerships and 37 collision centers, located in 15 states. The Nalley Chevrolet dealership is located in a high-volume auto mall represented by 18 brands in Union City, a southern suburb of Atlanta experiencing strong population growth. The buyer, ALM, was established in 2006 with a focus on providing high quality pre-owned vehicles in Atlanta and has since expanded to fourteen locations around Georgia and South Carolina with seven franchise locations, representing (2) Kia, (2) Hyundai, Nissan, Ford and Stellantis.

“As we continued to look for opportunities to make changes to our portfolio, we knew we wanted to partner again with Kerrigan Advisors on this sale, especially given their deep experience and expertise, both in the buy/sell market and in the Southern region,” said David Hult, CEO, Asbury Automotive Group. “Thank you to all our Nalley Chevrolet employees and customers over the years. We know that Nalley Chevrolet is in good hands with the team at ALM.”

“We were pleased to work again with the very impressive Asbury team in this sale," said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. "We continue to see robust buyer demand in the South, especially in high growth markets and, with Chevrolet as the top domestic brand, there was high demand for this dealership. Having represented more than 80 franchises sold in the region since 2020, Kerrigan Advisors was well positioned to lead this transaction on behalf of Asbury and are pleased the transaction had such a successful outcome.”

Atlanta is a top growth market in the US and ranks as the #1 “Best Place to Live” by Money Magazine. Atlanta’s economy has grown 32% in just five years, bolstered by the 17 Fortune 500 companies headquartered there, the 3rd largest concentration in the US. Chevrolet ranked #4 for vehicle quality by J.D. Power in 2023, growing sales by 13% in 2023, outpacing other domestic brands including Ford (+7.5%) and CDJR (-1.2%). The brand’s strength is fueled by a high-quality product lineup of trucks and SUVs, which continue to yield strong gross margins.

“We were honored to have been chosen to work on this divestiture with Asbury and appreciate the trust they placed in us,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “This transaction underscores the ongoing strength of the buy/sell market for robust franchises in economically thriving areas like Atlanta.”

About Kerrigan Advisors

Kerrigan Advisors is the leading sell-side advisor and thought partner to auto dealers nationwide. Since its founding in 2014, the firm has led the industry with the sale of over 275 dealerships representing nearly $9 billion in client proceeds, including the third largest transaction in auto retail history – the sale of Jim Koons Automotive Companies to Asbury Automotive Group. 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. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, Kerrigan Advisors does not take listings, rather they develop a customized sales approach for each client to achieve their personal and financial goals. In addition to the firm’s sell-side advisory services, Kerrigan Advisors also provides a suite of consulting and investor services including growth strategy, market valuation assessments, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate due diligence.

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 2023 Kerrigan Dealer Survey, click here. To read the 2024 Kerrigan OEM Survey, click here. Kerrigan Advisors also is the co-author of NADA’s Guide to Buying and Selling a Dealership.

Kerrigan Advisors Media Contact:

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

Gempton brings nearly two decades of automotive experience, including 13 years at AutoNation leading acquisitions and divestitures for the company; will expand Kerrigan Advisors’ footprint with the opening of a new office in Miami, Florida

Miami, FL   August 12, 2024 – Kerrigan Advisors, the leading sell-side advisory firm and thought partner to auto dealers in the US, today announced that Chris Gempton has joined the firm as Senior Vice President, Sell-Side Advisory. Gempton brings nearly two decades of automotive experience, including 13 years at AutoNation (NYSE: AN), where he most recently served as Vice President of Corporate Development. Gempton will open Kerrigan Advisors’ Florida office in Midtown Miami to serve Kerrigan Advisors’ clients in the southeastern US, which continues to be a very active market for dealership buy/sell transactions.

In Gempton’s most recent role as the head of corporate development at AutoNation, he led all acquisitions and divestitures for the company. During his tenure, he oversaw nearly $3 billion in transactions across 130+ dealerships representing more than $5 billion in revenue. Prior to AutoNation, Gempton began his career as a CPA serving the auto retail industry for MBAF (recently acquired by BDO) and PricewaterhouseCoopers.

“We are beyond thrilled that Chris chose to join the Kerrigan Advisors team, further expanding our presence in Florida, an area that continues to capture record valuation as referenced in our Q1 2024 Blue Sky Report,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors, which has represented on the sale of more than 275 dealerships since inception. “With the addition of Chris, Kerrigan Advisors further cements its status as the leading sell-side advisor in the industry, bringing the team’s collective transaction experience to nearly $12 billion.”

“Chris had many options for his next career move,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “We are proud he chose Kerrigan Advisors. Chris will be an exceptional member of our team and a perfect fit for our collaborative culture of excellence. His vast transaction experience and leadership of AutoNation’s corporate development group brings tremendous benefits to our growing firm and our clients.”

“Working with Kerrigan Advisors during my time at AutoNation was always a stellar experience,” said Chris Gempton. “Recognized as industry experts, and known industry-wide for their tremendous track record and Blue Sky Report®, the firm has always stood out for its professionalism, attention to detail and exceptional client service. I look forward to joining the team and contributing to their continued success.”

Founded in 2014, Kerrigan Advisors is the premier sell-side advisor and thought partner to auto dealers in the US, leading the industry in proceeds per transaction and representing transactions of nearly $9 billion in the last decade, more than any firm in the industry.

About Kerrigan Advisors

Kerrigan Advisors is the leading sell-side advisor and thought partner to auto dealers nationwide. Since its founding in 2014, the firm has led the industry with the sale of over 275 dealerships representing nearly $9 billion in client proceeds, including the third largest transaction in auto retail history – the sale of Jim Koons Automotive Companies to Asbury Automotive Group. 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. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, Kerrigan Advisors does not take listings, rather they develop a customized sales approach for each client to achieve their personal and financial goals. In addition to the firm’s sell-side advisory services, Kerrigan Advisors also provides a suite of consulting and investor services including growth strategy, market valuation assessments, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate due diligence.

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 2024 Kerrigan OEM Survey, click here.  To read the 2023 Kerrigan Dealer Survey, click here.  Kerrigan Advisors also is the co-author of NADA’s Guide to Buying and Selling a Dealership.

Kerrigan Advisors Media Contact:

mWEBB Communications

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