Robleto brings his extensive background in dealership real estate transactions to the most active sell-side advisor in the auto retail industry; new office enables Kerrigan Advisors to better serve its clients across the US

Irvine, CA, -- October 25th, 2018– Kerrigan Advisors, the leading sell-side advisory firm to auto dealers in the US, today announced that it has opened a second office in the Washington DC metro to better serve its client base across the US.  Heading up the new office is automotive retail real estate veteran Gabriel (Gabe) Robleto, who has been named Kerrigan Advisors’ Vice President of Buy/Sell Advisory.  Robleto’s extensive experience in auto retail transactions and dealership real estate will be invaluable to Kerrigan Advisors’ client service, particularly in the Eastern US.

Robleto joins Kerrigan Advisors from Capital Automotive Real Estate Services, Inc. (CARS), where he most recently served as Vice President of Acquisitions.  CARS is the leading real estate finance company focused exclusively on the automotive retail industry with over $5 billion of dealership real estate under management.  Robleto’s new role at Kerrigan Advisors will leverage his expertise in all facets of automotive retail real estate, including due diligence, financing, transactions, lease terms and real estate purchase agreements.

“Gabe’s impressive background in dealership real estate transactions could not be more timely in a buy/sell market where real estate, for most dealers, is their most valuable asset – often exceeding franchise value, and representing an increasingly larger slice of auto retail buy/sell transactions,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors, which has represented on the sale of 72 dealerships in the last three years, making it the most active buy/sell advisor in the auto retail industry.  “We are delighted that Gabe has joined our growing company, enabling us to expand our expertise in dealership real estate and increase our firm’s reach across the US.”

During his ten years at CARS, Robleto underwrote and financed over $300 million of auto dealership real estate in the form of sale leasebacks as part of buy/sell transactions and dealer estate planning.  Additionally, he was responsible for a portfolio of over $1 billion of CARS real estate investments across 18 states, which included leases to both public and privately-held dealer groups.  A graduate of the McIntire School of Commerce at the University of Virginia, Robleto is a frequent guest lecturer within McIntire’s real estate track, one of the top real estate programs in the US.

“As the scope of our business has broadened in a buy/sell market that continues to be robust, the need for a consistent East Coast presence has become clear,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors.  “Our new Washington DC metro office, under Gabe’s leadership, will enable us to be even more hands on with our clients in the Eastern and Southeastern US and to better serve the retail automotive market nationwide.”

“I am delighted to join the Kerrigan Advisors buy/sell advisory team.  There is no other firm in the industry with the expertise, professionalism and, most importantly, track record of success in the dealership buy/sell market,” said Gabe Robleto.  “I look forward to working with our clients on the successful sale of their dealerships.”

Founded in 2015, Kerrigan Advisors has represented transactions totaling over $1.5 billion in automotive retail.  The firm 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 the report, click here. The company also releases monthly The Kerrigan Index™ composed of the seven publicly traded auto retail companies with operations focused on the US market.  The Kerrigan 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 dealership sell-side advisory firm focused on providing a high level of client service for dealership sellers nationwide. Led by a team of veteran advisors, Kerrigan Advisors customizes each sale process to maximize the seller’s transaction proceeds. The firm has sold 72 dealerships since 2015, including five of the Top 100 Dealership Groups in the U.S. With the most comprehensive buyer database in the industry, Kerrigan Advisors has the industry context and expertise to match every seller with the right buyer. In addition to Kerrigan Advisors’ sell-side transaction work, the firm also provides a suite of consulting services including accounting preparation for sale, litigation support, open point applications and transactional due diligence.

In addition to the monthly Kerrigan Auto Retail Index, each quarter, Kerrigan Advisors publishes The Blue Sky Report®, a Kerrigan Quarterly, which is the auto industry's most comprehensive and authoritative quarterly report and analysis of dealership buy/sell activity and franchise values.  Kerrigan Advisors’ Managing Director, Erin Kerrigan, is a recognized industry expert on dealership valuation, real estate, and buy/sells, and is a frequent speaker at leading auto retail events and conferences, including NADA, JD Power Automotive Roundtable, AICPA, NADC, and Driving Sales’ President’s Club. She has also been a keynote speaker for events hosted by American Honda Motor Company, Audi of America, US Trust, Ohio Automobile Dealer Association, and SunTrust Bank and has led webinars for NADA and Automotive News.  Kerrigan Advisors’ Managing Director Ryan Kerrigan is also a sought-after industry expert. He is featured in a monthly column for Dealer Magazine and has written Op-Eds for Automotive News, among other outlets.

Kerrigan Advisors Media Contact:
mWEBB Communications
Melanie Webber (melanie@mwebbcom.com), mWEBB Communications, 949-307-1723

Carson KIA, the Nation’s highest-volume KIA Dealership, sold to Trophy Automotive Dealer Group    

Irvine, CA, -- August 22, 2018 – Kerrigan Advisors, the leading sell-side advisory firm to auto dealers in the U.S., represented and advised Car Pros Automotive Group in their recent sale of Carson KIA, the highest volume KIA dealership in the U.S. since 2016. The buyer is the Southern California-based Trophy Automotive Dealer Group (TADG). Opened in 2017, the dealership’s new state-of-the-art facility spans 72,000 square feet, and is a flagship in KIA’s national distribution network.  This marks the 5th dealership that TADG has purchased in Southern California in recent years.

“This was a very big decision for our family.  While we have no intention of leaving the car business, we felt that selling our large KIA store in Carson made sense, both for our family and for the strategic direction of the Group,” said Matthew Phillips, CEO of Car Pros Automotive Group and son of the founder and chairman, Ken Phillips. In addition to the Carson store, Car Pros Automotive Group comprises six dealerships in Northwest Washington and Southern California. “I’d like to thank Kerrigan Advisors for smoothly guiding us through this process, with such a high level of professionalism – they truly understand everything a seller goes through and offered sensitivity, a keen understanding of the current (and future) automotive landscape and support every step of the way.”  

Kerrigan Advisors has represented on the sale of 72 dealerships since July 2015, making it the most active sell-side advisor in the auto retail industry. 

“Ken and his family are the top KIA retailers in the United States and have been a huge part of that brand’s success on the West Coast – which is also one of the most demanding and cutting-edge automotive markets in the world,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “From the start, in handling this transaction, we focused on that innovative spirit. This is a crown jewel for the KIA brand, and we were proud to be able to offer Carson KIA the representation it deserved.”

The Phillips family has retailed more than 100,000 KIAs in the U.S., more than anyone else, ever – an achievement that reflects their generational connection to the brand, and to the West Coast automotive market. “I opened my first dealership in Des Moines, Washington in 1984, based on the ideals of honesty and integrity,” said Founder Ken Phillips. “As I look back, for the past 35 years, we’ve held true to those standards in everything we’ve done. I am proud to say that our recent transaction was handled in the same fashion. Kerrigan Advisors really helped to provide the expertise we needed to transition our Group toward the next phase of Car Pros automotive retail.”

“We were honored to represent the Phillips family on this big transaction,” said Erin Kerrigan, Managing Director of Kerrigan Advisors. “This is a landmark dealership in the KIA network, and we have enjoyed working with the Phillips family to develop their game plan for the next leg of their group’s growth.  We congratulate Trophy Automotive Dealer Group on adding Carson KIA to their portfolio of Southern California dealerships.”

Gus Paras and Bert Rasmussen of Scali Rasmussen served as legal counsel to Car Pros Automotive Group.  Aaron Jacoby of Arent Fox served as legal counsel to Trophy Automotive Dealer Group.

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 the report, click here. The company 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.

Ryan Kerrigan is Managing Director of Kerrigan Advisors and an expert on US auto retail buy-sell transaction work.  Prior, Ryan served as Managing Director at Serent Capital, a $250mm private equity fund investing in middle market companies and served as General Manager of the family’s auto dealership. Mr. Kerrigan began his career as a management consultant at McKinsey & Company, where he advised Fortune 500 companies on growth strategies, organizational issues, pricing and business valuation.

Erin Kerrigan (www.kerriganadvisors.com/meet-the-team/) is Founder and Managing Director of Kerrigan Advisors, and is a recognized industry expert on dealership valuation, real estate and buy/sells. A sought-after commentator on automotive retailing topics ranging from consumer auto buying trends to auto retail consolidation to private equity in auto retail, she has keynoted numerous automotive conferences and her analysis has appeared in publications such as Automotive News, CNBC.com, and the Wall Street Journal. For a recent video of Erin’s commentary on the market, click here: https://www.youtube.com/watch?v=gPrMMtRF-IU&feature=youtu.be.

About Kerrigan Advisors

Kerrigan Advisors is the leading dealership buy/sell advisory firm focused on providing a high level of client service for dealership sellers nationwide. Led by a team of veteran advisors, Kerrigan Advisors customizes each sale process to maximize the seller’s transaction proceeds. The firm has sold 72 dealerships since 2015, including five of the Top 100 Dealership Groups in the U.S. With the most comprehensive buyer database in the industry, Kerrigan Advisors has the industry context and expertise to match every seller with the right buyer. In addition to Kerrigan Advisors’ sell-side transaction work, the firm also provides a suite of consulting services including accounting preparation for sale, litigation support, open point applications and transactional due diligence.

In addition to the monthly Kerrigan Auto Retail Index, each quarter, Kerrigan Advisors publishes The Blue Sky Report®, a Kerrigan Quarterly, which is the auto industry's most comprehensive and authoritative quarterly report and analysis of dealership buy/sell activity and franchise values.  Kerrigan Advisors’ Managing Director, Erin Kerrigan, is a recognized industry expert on dealership valuation, real estate, and buy/sells, and is a frequent speaker at leading auto retail events and conferences, including NADA, JD Power Automotive Roundtable, AICPA, NADC, and Driving Sales’ President’s Club. She has also been a keynote speaker for events hosted by American Honda Motor Company, Audi of America, US Trust, Ohio Automobile Dealer Association, and SunTrust Bank and has led webinars for NADA and Automotive News.  Kerrigan Advisors’ Managing Director Ryan Kerrigan is also a sought-after industry expert. He is featured in a monthly column for Dealer Magazine and has written Op-Eds for Automotive News, among other outlets.

Kerrigan Advisors Media Contact:
mWEBB Communications

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

An increasing pool of dealership buyers and investors have helped sustain the market’s high blue sky values; growing number of groups go to market, driving activity and consolidation

Irvine, CA – June 13, 2018 – The auto dealership buy/sell market continued its high level of activity, fueled by a healthy economy and an increased pool of sellers reacting to auto retail’s future, according to The Blue Sky Report’s® First Quarter Report released by Kerrigan Advisors.

Fresh investment and capital from new players, including international buyers, kept the pace at a high level – though down from last year’s peak, says The Blue Sky Report. The continued steady pace of a 17 million SAAR, compounded by pressure on dealership profits and emerging changes to the dealership business model, have essentially defined the market into two camps: buyers who have outside capital or resources to embrace and drive change, and sellers who are increasingly reliant on OEM incentives for profitability, and are concerned about how coming changes will impact generational succession plans. 

Among the most noteworthy transactions underscoring this trend is AutoCanada’s acquisition of Kerrigan Advisors’ client Grossinger Automotive Group (#95 on Automotive News’ Top 150 Dealership Group List). The Grossinger transaction was the largest transaction ever made in auto retail by a non-U.S. company.

“As with 2017, we’re continuing to see the economic benefits of consolidation, and how that’s attracting new buyers to auto retail,” said Erin Kerrigan, managing director of Kerrigan Advisors. “There is also a rising interest by many dealers in selling.  In particular, smaller dealership groups, who are struggling to maximize profit through economies of scale, are concerned about the viability of their family business for future generations. These dealers would rather sell now when values are high then risk the unknown.”

This cautious approach to unknown factors has also changed the way buyers are approaching the market. While the past saw them base valuations on future potential earnings, today’s focus is on current performance. “In the last decade, buyers mostly priced acquisitions based on expected pro forma earnings post-transaction,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “With industry sales slowing, however, many are now unwilling to base their purchase price on what a dealership could do.  They are focused on what the dealership is currently doing in terms of profit.  That is what drives value today..”

The Blue Sky Report, published by Kerrigan Advisors, is the auto industry's most comprehensive and authoritative quarterly report on dealership M&A activity, as well as franchise values. It includes analysis of all transaction activity in for the quarter, and lays out the high, average and low blue sky multiples for each franchise in the luxury and non-luxury segments.  

Blue Sky Report data and analysis from the June Quarterly Report includes:

• Actual transactions declined quarter over quarter, but the number of franchises represented in each transaction increased by 45%. As a result, the total number of franchises sold in the quarter remained on pace with 2017.
• Multi-dealership transaction activity increased 27% in the first quarter of 2018, compared to 2017. Kerrigan Advisors expects the pace of multi- dealership transactions to remain high in 2018.
• Among franchises being acquired, domestic franchises(44%) maintained their leading position with the highest buy/sell market share, followed by import non-luxury franchises (40%) and import luxury franchises (16%).
• Import franchises had the highest turnover rate– a reflection of high buyer demand and low franchise supply. The supply/demand imbalance of many import franchises also results in higher blue sky values and multiples.
• U.S. public auto retailers’ U.S. acquisition spending increased 62% in the first quarter of 2018, compared to the Q1 2017.  At this spending level, public retailers are tracking towards over $1.5 billion of U.S. acquisition spending in 2018, a level that would exceed 2014’s peak level.
• Private buyers, however, continue to dominate buy/sell markets with almost 80% of franchises. Private buyers are accessing debt and equity capital to finance their growth and compete with the publics for sizable acquisitions.

The report identifies three key trends shaping 2018 and into 2019:

• Private dealers partner with outside capital to finance growth plans
• Public dealership groups become increasingly acquisitive
• Buyers focus on current performance rather than pro forma when pricing blue sky

“Kerrigan Advisors sees movement toward increased consolidation in auto retail, as well as continued increase in capital investment from outside the industry. Buyers are excited by the long-term opportunity and healthy pace of the current market, and see it as a chance to increase investment,” added Erin Kerrigan. “At the same time, we expect this shift toward economies of scale, coupled by current high values, to entice smaller dealership groups to sell as part of their estate planning.”

The Blue Sky Report®, a Kerrigan Quarterly, is published four times a year and includes Kerrigan Advisors’ signature blue sky charts, multiples and analysis for each franchise in the luxury and non-luxury segments.   To preview and download The Blue Sky Report, click here: www.kerriganadvisors.com/wp-content/uploads/2018/06/Blue-Sky-Report-Q1-2018-preview.pdf.  

Kerrigan Advisors also releases a monthly index, The Kerrigan Index™, composed of the seven publicly traded auto retail companies with operations focused on the US market.  The Kerrigan 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: www.kerriganadvisors.com/the-kerrigan-index/.

Erin Kerrigan (www.kerriganadvisors.com/meet-the-team/) is Founder and Managing Director of Kerrigan Advisors, and is a recognized industry expert on dealership valuation, real estate and buy/sells. A sought-after commentator on automotive retailing topics ranging from consumer auto buying trends to auto retail consolidation to private equity in auto retail, she has keynoted numerous automotive conferences and her analysis has appeared in publications such as Automotive News, CNBC.com, and the Wall Street Journal. For a recent video of Erin’s commentary on the market, click here: https://www.youtube.com/watch?v=gPrMMtRF-IU&feature=youtu.be.

Ryan Kerrigan (www.kerriganadvisors.com/meet-the-team/) is Managing Director of Kerrigan Advisors and an expert on US auto retail buy-sell transaction work. Prior, Ryan served as Managing Director at Serent Capital, a $250MM private equity fund investing in middle market companies and served as General Manager of the family’s auto dealership. Mr. Kerrigan began his career as a management consultant at McKinsey & Company, where he advised Fortune 500 companies on growth strategies, organizational issues, pricing and business valuation. For a recent video of Ryan’s commentary on the market, click here: cbtnews.com/october-buysell-report-kerrigan-advisors-market-update/.

About Kerrigan Advisors

Kerrigan Advisors is the leading dealership buy/sell advisory firm focused on providing a high level of client service for dealership sellers nationwide. Led by a team of veteran advisors, Kerrigan Advisors customizes each sale process to maximize the seller’s transaction proceeds. The firm has sold 71 dealerships since 2015, including five of the Top 100 Dealership Groups in the U.S. With the most comprehensive buyer database in the industry, Kerrigan Advisors has the industry context and expertise to match every seller with the right buyer. In addition to Kerrigan Advisors’ sell-side transaction work, the firm also provides a suite of consulting services including accounting preparation for sale, litigation support, open point applications and transactional due diligence.

In addition to the monthly Kerrigan Auto Retail Index, each quarter, Kerrigan Advisors publishes The Blue Sky Report®, a Kerrigan Quarterly, which is the auto industry's most comprehensive and authoritative quarterly report and analysis of dealership buy/sell activity and franchise values.  Kerrigan Advisors’ Managing Director, Erin Kerrigan, is a recognized industry expert on dealership valuation, real estate, and buy/sells, and is a frequent speaker at leading auto retail events and conferences, including NADA, JD Power Automotive Roundtable, AICPA, NADC, and Driving Sales’ President’s Club. She has also been a keynote speaker for events hosted by American Honda Motor Company, Audi of America, US Trust, Ohio Automobile Dealer Association, and SunTrust Bank and has led webinars for NADA and Automotive News.  Kerrigan Advisors’ Managing Director Ryan Kerrigan is also a sought-after industry expert. He is featured in a monthly column for Dealer Magazine and has written Op-Eds for Automotive News, among other outlets.

Kerrigan Advisors Media Contact:
mWEBB Communications
Melanie Webber, 424.603.4340 / melanie@mwebbcom.com

Longest running dealership group in Illinois completes sale of 15 franchise dealerships, marking fifth Top 100 Dealership Group transaction completed by Kerrigan Advisors.

AutoCanada enters US market with acquisition, which is largest acquisition of US dealerships by an international buyer in the history of auto retail.    

Irvine, CA, March 21st, 2018 – Kerrigan Advisors, the leading sell-side advisory firm to auto dealers in the US, represented and advised Gary and Caroline Grossinger, owners of the Grossinger Auto Group, in their sale to AutoCanada.  This transaction represents AutoCanada’s first acquisition in the US.  The sale of Grossinger Auto Group marks the fifth Top 100 Dealership Group Kerrigan Advisors has represented, more than any other advisory firm. 

With 15 franchises, Grossinger Auto Group is the longest running dealer group in Illinois and was recently listed as the 95th largest dealership group in the United States.  AutoCanada is the largest dealership group in Canada with over $3 billion in 2017 revenue, and is the only public dealership group in Canada.  This transaction represents the largest acquisition of US dealerships by an international buyer in the history of auto retail.

“Gary and I have had a tremendous experience working both with the Kerrigan Advisors and AutoCanada team throughout this transaction.  It was a very heartfelt and bittersweet decision for Gary and me to ultimately decide to sell our dealerships in Illinois after so many years and such a long standing, very strong and treasured family legacy. Always having immense passion for our business and a deep appreciation for our outstanding personnel, once we decided to sell we needed to ensure we chose an advisor group and, ultimately, a purchaser who was aligned with our priorities of providing employees security, continuity of our community relationships, and our focus on the customer experience,” said co-President Caroline Grossinger. “With Kerrigan Advisors’ guidance and expertise, we were able to find such a group with AutoCanada.  We are looking forward to the platform of the 15 franchises operating under the very successful AutoCanada team with much success and prosperity.”

Caroline and Gary Grossinger are grandchildren of founder Sam Grossinger, and took over operations of the group at the passing of their father Irwin. A community institution, Grossinger began as a parking garage, then moved into tires, and eventually became a Pontiac franchise in 1928, growing to become one of the largest auto groups in the country

The sale includes nine dealerships representing 15 franchises throughout greater Chicago, including Lincolnwood, Palatine, and Normal. The automotive brands include Audi, Cadillac, Chevrolet, Hyundai, KIA, Lincoln, Mercedes-Benz, Subaru, Toyota, Volkswagen, and Volvo.

“We needed sell-side advisors who could manage the complexities of a large, legacy dealership group like ours,” said co-President Gary Grossinger. “We chose Kerrigan Advisors because they have more experience than any other firm representing the largest dealership groups in our industry and we valued their insight and tremendous buy/sell experience.”

Headed by Erin and Ryan Kerrigan, Kerrigan Advisors has now represented on the sale of 69 dealerships since July 2015, making it the most active sell-side advisor in the auto retail industry. 

“This was a critically complex transaction that included an international buyer, AutoCanada, the largest auto retailer in Canada, in their first US acquisition,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors, who led the transaction. “It was a unique opportunity for Kerrigan Advisors to link an international strategic player with an important U.S. dealer group. It’s also significant to see an international, public group entering the U.S. market with a platform acquisition.  That’s a trend we’ve spotted in prior Blue Sky Reports and one we expect to continue in the coming years.”

“Kerrigan Advisors is thrilled to have facilitated the largest US auto retail transaction to an international buyer in the history of auto retail.  Never has a non-US buyer acquired 15 franchises in a single transaction,” said Erin Kerrigan, Managing Director of Kerrigan Advisors. “With the Blue Sky Report now distributed to over 7,000 individuals in 35 countries, Kerrigan Advisors continues to field inbound calls from non-US buyers interested in investing in US dealerships.  We expect many of our future transactions will be cross-border.”

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 the report, click here. The company 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.

Erin Kerrigan is Founder and Managing Director of Kerrigan Advisors, and is a recognized industry expert on dealership valuation, real estate and buy/sells. A sought-after commentator on automotive retailing topics ranging from consumer auto buying trends to auto retail consolidation to private equity in auto retail, she has keynoted numerous automotive conferences and her analysis has appeared in publications such as Automotive News, CNBC.com, and the Wall Street Journal. For a recent video of Erin’s commentary on the market, click here.

Ryan Kerrigan is Managing Director of Kerrigan Advisors and an expert on US auto retail buy-sell transaction work. Prior, Ryan served as Managing Director at Serent Capital, a $250MM private equity fund investing in middle market companies and served as General Manager of the family’s auto dealership. Mr. Kerrigan began his career as a management consultant at McKinsey & Company, where he advised Fortune 500 companies on growth strategies, organizational issues, pricing and business valuation. For a recent video of Ryan’s commentary on the market, click here.

About Kerrigan Advisors

Kerrigan Advisors is the leading dealership buy/sell advisory firm focused on providing a high level of client service for dealership sellers nationwide. Led by a team of veteran advisors, Kerrigan Advisors customizes each sale process to maximize the seller’s transaction proceeds. The firm has sold 69 dealerships since 2015.  With the most comprehensive buyer database in the industry, Kerrigan Advisors has the industry context and expertise to match every seller with the right buyer. In addition to Kerrigan Advisors’ sell-side transaction work, the firm also provides a suite of consulting services including accounting preparation for sale, litigation support, open point applications and transactional due diligence.

In addition to the monthly Kerrigan Auto Retail Index, each quarter, Kerrigan Advisors publishes The Blue Sky Report®, a Kerrigan Quarterly, which is the auto industry's most comprehensive and authoritative quarterly report and analysis of dealership buy/sell activity and franchise values.  Kerrigan Advisors’ Managing Director, Erin Kerrigan, is a recognized industry expert on dealership valuation, real estate, and buy/sells, and is a frequent speaker at leading auto retail events and conferences, including NADA, JD Power Automotive Roundtable, AICPA, NADC, and Driving Sales’ President’s Club. She has also been a keynote speaker for events hosted by American Honda Motor Company, Audi of America, US Trust, Ohio Automobile Dealer Association, and SunTrust Bank and has led webinars for NADA and Automotive News.  Kerrigan Advisors’ Managing Director Ryan Kerrigan is also a sought-after industry expert. He is featured in a monthly column for Dealer Magazine and has written Op-Eds for Automotive News, among other outlets.

Contacts

Kerrigan Advisors Media Contact:
mWEBB Communications
Melanie Webber, 949.307.1723
melanie@mwebbcom.com

Auto Dealership Transactions Stay Above 200, as Consolidation Continues and Sellers Fast-Track Succession Plans, according to The Blue Sky Report® released by Kerrigan Advisors

For the fourth consecutive year, buy/sell transactions exceeded 200; since 2014 the industry has completed over 850 buy/sell transactions – one of the most active markets in auto retail history.

Irvine, CA –March 19, 2018 – The auto dealership Buy/Sell market surpassed 200 transactions for the fourth consecutive year in 2017, according to The Blue Sky Report’s® Full Year Report released by Kerrigan Advisors.

Factors driving market activity, says The Blue Sky Report, include dealership consolidation, profitability, and the growing number of sellers coming to market. Many dealers reassessed succession plans in light of disruptive projections about the changing nature of auto retail, and the belief that only large groups will be able to successfully navigate the industry’s evolution. Sellers also cited concern over reliance on OEM incentives to support dealership profitability, as well as manufacturer facility requirements.   

“The economic benefits of consolidation continued to bring new buyers to market in 2017, and these new entrants included a growing number of international auto retailers,” said Erin Kerrigan, managing director of Kerrigan Advisors. “These international buyers are primarily motivated by the tremendous consolidation opportunity in the US auto retail market, considered by many to be the most fragmented in the developed world. High net worth individuals and family offices also sought investments in auto retail in 2017. All of these new entrants are highly attracted to the economies of scale available in US auto retail through meaningful consolidation.”

The Blue Sky Report, published by Kerrigan Advisors, is the auto industry's most comprehensive and authoritative quarterly report on dealership M&A activity, as well as franchise values. It includes analysis of all transaction activity in 2017 and lays out the high, average and low blue sky multiples for each franchise in the luxury and non-luxury segments for the quarter.  

Blue Sky Report data and analysis from the 2017 Full Year Report includes:

• 202 dealership buy/sell transactions were completed in 2017, according to Kerrigan Advisors’ research and The Banks Report, compared to 221 transactions in 2016.  After hitting a plateau in 2015 at 240 transactions, buy/sell activity declined slightly; Kerrigan Advisors expects an increase of activity in 2018 compared to 2017.
• Multi-dealership transactions declined slightly in 2017. Fifty-one multi-dealership transactions closed in 2017, resulting in a 11% decrease over 2016’s record year. The size of some dealership groups is a motivating factor in the sale. Many are simply too large and too valuable to pass on to the next generation, particularly given predicted industry disruption.
• For 2017, domestics’ share of the buy/sell market remained steady at 43%; import luxury represented 20% of the buy/sell market in 2017, a disproportionate number considering that import luxury franchises represent just 9% of US franchises.
• Public retailers’ acquisition spending increased 20% in 2017 compared to 2016, led by Lithia Motors.
• Private buyers, including new entrants to US auto retail, dominated the 2017 US dealership buy/sell market. Of the 343 franchises sold, 317 were acquired by private buyers.

Over 60 dealership groups now report over $1 billion in sales. That number is expected to grow considerably in the next five years, as the largest groups consolidate the industry.

The report identifies three key trends shaping 2018’s buy/sell market:

• Tax reform benefits auto retail and results in increased buy/sell activity
• Dealers’ investment strategies shaped by auto retail’s expected evolution
• Dealership profit variability widens blue sky pricing ranges

“We expect 2018 to be a very active year for buy/sells with more private and public buyers eager to put their capital to work. These buyers believe growth is the answer to a changing auto retail environment and are eager to capitalize on economies of scale and scope,” added Ryan Kerrigan, Managing Director of Kerrigan Advisors. “We also expect more sellers coming to market in 2018, particularly given the drumbeat of change reverberating throughout the industry.”

Kerrigan Advisors is deeply involved in the Buy/Sell Market having advised on the sale of 60 dealerships, including four of the Top 100 Dealership Groups (Sam Swope Auto Group, the Carbone Auto Group, the Tonkin Family of Dealerships, and Downtown LA Auto Group) since 2015. Kerrigan Advisors’ extensive experience representing the largest dealership groups in the country provides the firm with a unique perspective on the trends shaping the industry and today’s franchise values. 

The Blue Sky Report®, a Kerrigan Quarterly, is published four times a year and includes Kerrigan Advisors’ signature blue sky charts, multiples and analysis for each franchise in the luxury and non-luxury segments.   To download The Blue Sky Report, click here: www.kerriganadvisors.com/the-blue-sky-report/.

Kerrigan Advisors also releases a monthly index, The Kerrigan Index™, composed of the seven publicly traded auto retail companies with operations focused on the US market.  The Kerrigan 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: www.kerriganadvisors.com/the-kerrigan-index/.

Erin Kerrigan (http://www.kerriganadvisors.com/meet-the-team/) is Founder and Managing Director of Kerrigan Advisors, and is a recognized industry expert on dealership valuation, real estate and buy/sells. A sought-after commentator on automotive retailing topics ranging from consumer auto buying trends to auto retail consolidation to private equity in auto retail, she has keynoted numerous automotive conferences and her analysis has appeared in publications such as Automotive News, CNBC.com, and the Wall Street Journal. For a recent video of Erin’s commentary on the market, click here: https://www.youtube.com/watch?v=gPrMMtRF-IU&feature=youtu.be.

Ryan Kerrigan (http://www.kerriganadvisors.com/meet-the-team/) is Managing Director of Kerrigan Advisors and an expert on US auto retail buy-sell transaction work. Prior, Ryan served as Managing Director at Serent Capital, a $250MM private equity fund investing in middle market companies and served as General Manager of the family’s auto dealership. Mr. Kerrigan began his career as a management consultant at McKinsey & Company, where he advised Fortune 500 companies on growth strategies, organizational issues, pricing and business valuation. For a recent video of Ryan’s commentary on the market, click here: https://cbtnews.com/october-buysell-report-kerrigan-advisors-market-update/.

About Kerrigan Advisors

Kerrigan Advisors is the leading dealership buy/sell advisory firm focused on providing a high level of client service for dealership sellers nationwide. Led by a team of veteran advisors, Kerrigan Advisors customizes each sale process to maximize the seller’s transaction proceeds. The firm has sold 60 dealerships since 2015.  With the most comprehensive buyer database in the industry, Kerrigan Advisors has the industry context and expertise to match every seller with the right buyer. In addition to Kerrigan Advisors’ sell-side transaction work, the firm also provides a suite of consulting services including accounting preparation for sale, litigation support, open point applications and transactional due diligence.

In addition to the monthly Kerrigan Auto Retail Index, each quarter, Kerrigan Advisors publishes The Blue Sky Report®, a Kerrigan Quarterly, which is the auto industry's most comprehensive and authoritative quarterly report and analysis of dealership buy/sell activity and franchise values.  Kerrigan Advisors’ Managing Director, Erin Kerrigan, is a recognized industry expert on dealership valuation, real estate, and buy/sells, and is a frequent speaker at leading auto retail events and conferences, including NADA, JD Power Automotive Roundtable, AICPA, NADC, and Driving Sales’ President’s Club. She has also been a keynote speaker for events hosted by American Honda Motor Company, Audi of America, US Trust, Ohio Automobile Dealer Association, and SunTrust Bank and has led webinars for NADA and Automotive News.  Kerrigan Advisors’ Managing Director Ryan Kerrigan is also a sought-after industry expert. He is featured in a monthly column for Dealer Magazine and has written Op-Eds for Automotive News, among other outlets.

Kerrigan Advisors Media Contact:
mWEBB Communications
Melanie Webber, 424.603.4340 / melanie@mwebbcom.com