Sale of leading domestic brand in the highly desirable Washington DC market marks Kerrigan Advisors’ 284th dealership sold and 54th franchise sold in the Mid-Atlantic region since the firm’s inception

WASHINGTON DC – December 19, 2024 – Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented Northern Virginia-based Country Auto Stores in the sale of Country Buick GMC of Leesburg in Loudoun County to Jaffer Syed. In addition to being the 80th franchise Kerrigan Advisors has sold in 2024, the completion of this transaction represents Kerrigan Advisors’ 54th franchise sold in the Mid-Atlantic region and its 284th dealership transaction since 2014.

“We are pleased to have completed the sale of Country Buick GMC and to represent Andy Budd in the sale of this desirable dealership, located in the wealthiest county in the country,” said Gabe Robleto, Senior Vice President, Sell-Side Advisory at Kerrigan Advisors. “Andy is a highly respected dealer and generous contributor to the community. We were honored to support him in bringing this transaction to a positive close."

Operating in the economically vibrant Washington DC metropolitan area, Country Buick/GMC is the 7th highest volume Buick GMC dealership in the state (out of 38) and ranks in the top 35% nationally for Buick GMC.

“When looking to hire an advisory firm, Kerrigan Advisors was the clear choice given their leading transaction experience, particularly in the Washington DC-Baltimore market. They managed the sale process from beginning to end on my behalf and were extremely professional ensuring my goals for my sale were met,” said Andy Budd, Owner of Country Auto Stores. “A welcoming and comfortable experience for the Leesburg community has always been our top priority, and I’m incredibly proud of our employees for consistently delivering on that promise. It was a very hard decision to sell; however, I am confident that under new ownership with Jaffer Syed, the community will continue to receive the same exceptional service.” 

Loudoun County, located in Northern Virginia, is one of the most desirable in the nation, driven by robust population growth (up 39% since 2010, 8x the US average rate) and high incomes (for 16 consecutive years, Loudon County has ranked as the highest-earning county in the US). The county also benefits from Virginia's pro-business environment, named America’s Top State for Business in 2024, according to CNBC. Situated within the Washington DC metropolitan area, Loudoun County thrives in one of the nation’s strongest economies, consistently outperforming the overall US, particularly in recessionary periods.

"We are grateful for the opportunity to work with Andy Budd in this booming part of the US. The Mid-Atlantic boasts one of the country’s strongest economies and is highly sought after by today's buyers, as we have learned across the 54 franchises successfully sold by Kerrigan Advisors in this region,” said Erin Kerrigan, Founder & Managing Director of Kerrigan Advisors.  “We were pleased to be able to leverage our firm’s knowledge, bolstered by our work on the successful sale of Jim Koons Automotive last year, one of the industry’s largest transactions in history, to bring the Country Buick GMC transaction to a conclusion that delivered the best value for both parties.”

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

Buy/sell market continues to trend towards high volume dealerships in high growth markets; marks Kerrigan Advisors’ 133rd dealership sold in the southern region since inception and 79th franchise sold in 2024

NEW ORLEANS, LA – December 16, 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 Hyundai Genesis of Metairie dealership to Matt Bowers Auto Group following the successful sale last month of its Audi Lafayette dealership. Matt Bowers Group, owned by Matt Bowers, operates six dealerships located across Louisiana, Alabama, and Tennessee. This transaction represents Kerrigan Advisors’ 283rd dealership and 133rd franchise sold in the South since 2015 and the 79th franchise sold this year.

“We are honored to continue to support the Bohn family, this time in the sale of their Hyundai Genesis dealership, a transaction that, again, underscores the enduring strength of the auto retail market in the South,” said Gabe Robleto, Senior Vice President, Sell-Side Advisory at Kerrigan Advisors. “Our priority was to facilitate a smooth and successful transaction, and we are very pleased with this outcome.”

Following this sale, and the recent sale of Audi Lafayette and Audi New Orleans, Bohn Brothers Automotive also owns Toyota of Slidell. The group traces its roots back to the founding of the Bohn Motor Company by George W. Bohn in 1924 in New Orleans. Over the years, the Bohn family has carried on this legacy by expanding through multiple generations. Owned since 2009, Hyundai of Metairie now ranks as the #1 Hyundai dealership in New Orleans and Genesis of Metairie is one of only two Genesis franchises in New Orleans proper.

“Once again, Gabe Robleto and Kerrigan Advisors demonstrated why they are the best sell-side advisors in the business. Coupled with their vast transaction experience in the South, their expertise and attention to every detail was evident at every stage of the transaction,” said Donny Bohn, Co-Owner of Bohn Brothers Automotive Group. “We are grateful for their comprehensive support throughout the process and are extremely satisfied with the outcome of this sale.”

Home to over 1.2 million people, and nearly 30% of the state’s population, New Orleans is Louisiana’s largest metropolitan area and a frequent host of major events, including the 2025 NADA (National Auto Dealer Association) Convention and the 2025 Super Bowl. It is the economic powerhouse of Louisiana, with strong growth projections over the next five years, driven by the presence of major corporations, two of the country’s largest ports, higher education institutions and a vast network of healthcare systems. Additionally, businesses and consumers benefit from the area’s attractive living and business costs, significantly lower than the US average. Also, Hyundai ranks as the fourth best-selling brand in New Orleans, with market share that exceeds the national level by 24%.

“Metairie is the largest car market in New Orleans, capturing nearly 50% of the MSA’s new vehicle sales. Dealership buyers continue to gravitate toward high-volume auto retail markets, like New Orleans, and top-ranked franchises, such as Hyundai,” said Erin Kerrigan, Founder & Managing Director of Kerrigan Advisors. “We were delighted to again work with the Bohn family in their dealership sale, and gratified that we were able to shepherd another transaction on their behalf to such a successful conclusion. Congratulations to Scott, Donny and Van Bohn, as well as Matt Bowers on this transaction.”

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 $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

2024 Kerrigan OEM Survey finds OEMs expect sales to increase and earnings to normalize at higher levels over the next 12 months, despite high interest rates and affordability challenges; majority of OEMs developing ICE production contingency plans as electric vehicle (“EV”) demand softens and EV sales expectations wane

Incline Village, NV – July 29, 2024 – Automotive OEMs are generally optimistic about the health of the automotive industry over the next 12 months, with the vast majority expecting new vehicle sales to increase or remain the same versus 2023, according to the just-released 2024 Kerrigan OEM Survey.

The survey, gathered from Kerrigan Advisors’ annual survey of automotive OEM executives in conjunction with the issuance of The Blue Sky Report®, is designed to gauge OEM executives’ perspectives on the franchise system, dealer profitability and electric vehicle sales. The 2024 results indicate that despite high interest rates and consumer affordability challenges, the industry is amid a normalization period, in which dealership sales, profits and inventories are moderating, likely at more attractive levels than the pre-pandemic period. Strikingly, the survey reveals significant challenges with the industry’s transition to EVs, with 81% of OEMs expecting the transition to be slower than originally forecast.

“Our second annual survey of OEM executives provides a critical window into their unique perspectives of the automotive industry. The survey offers a candid, on-the-ground view of auto retail’s opportunities and challenges in the near and medium term,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “The results underscore the continuing evolution of the auto retail marketplace, particularly regarding the demand challenges associated with EVs. It is interesting to see that most OEMs are making contingency plans for increased ICE production and admitting their EV sales projections will not be met. Even with the EV miscalculations, we are pleased to see that executives have a largely positive outlook on the auto retail industry, expecting rebounding new vehicle sales and gross margins to remain above pre-pandemic levels for the foreseeable future.”

Dealership Profits, Sales, Margins and Inventories Reflect Improving Outlook

Only 54% of OEM executives surveyed expect dealership profitability to decline in the next 12 months, compared with 69% in 2023. Consistent with this improved outlook, 41% of OEMs expect profits to remain the same over the next 12 months, versus just 24% who had that expectation last year. As with 2023, a slim minority project dealership earnings to increase in the near-term. These results are an indication that auto retail profits are beginning to normalize for many franchises.

Despite high interest rates and consumer affordability challenges, 44% of OEMs expect new vehicle sales to increase over the next 12 months, while 48% project sales will remain at 2023 levels, only 8% expect a decline. This sales optimism is likely a byproduct of rising new vehicle inventory expectations, with 70% projecting days’ supply to normalize between 60 and 90 days, up from 38% in 2023.  

“We are in the midst of auto retail’s great normalization. After years of historically high dealership profits, new vehicle inventories are rebounding and gross profit margins are on the decline,” continued Erin Kerrigan. “That said, we are pleased to see the majority of OEM executives do not expect a return to pre-pandemic gross profit margins. In fact, an increasing number of executives predict dealership earnings will flatten in 2024 - an indication OEMs do not intend to return to a period of overproduction and excess inventories.”

EV Transition Remains Slow, Impacting OEM Decisions

In addition to the vast majority who anticipate a slower transition to EVs, over two-thirds of OEMs surveyed project that they will not meet their proposed EV sales goals, with 86% reporting they are developing contingency ICE production plans if EVs do not penetrate the market as successfully as expected. These results are consistent with the declining sales growth in EVs – through June 2024, EV sales growth is down 84% compared to 2023.

The failure of OEMs to meet their projected EV sales is also driving substantial modifications to their expected changes to the auto retail model: over half of OEM respondents do not expect the agency model to be introduced in the US in the next five years, a dramatic shift from the only 24% who were skeptical in 2023. The survey also reveals a major change related to anticipated increases in facility requirements, with 60% expecting no increase in requirements over the next five years, and only 18% projecting an increase, compared to 32% in 2023. Additionally, while OEMs are more supportive of the dealership legacy sales model, a rising number expect to take a leading role in the customer relationship and data ownership. The majority (67%) expect the customer relationship and data will be shared by OEMs and dealers in the future, though 19% (a 16% increase from 2023) believe the OEM will exclusively own the customer relationship and data. Just 14% of respondents project the legacy model, in which the dealer is the primary owner of the customer relationship, will remain. These results demonstrate the OEMs’ continued desire to have more direct management of the customer relationship.

“As our survey makes clear, the industry’s transition to EVs will be much slower than originally projected and OEMs are preparing necessary contingency plans for increased ICE and hybrid production to meet consumer demand,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “This has also led to a pullback in OEMs’ changes to the retail sales model and facility requirements, with some, such as Ford, abandoning their plans to take a more active role in retailing and recognizing the dealer network is the most economic and efficient sales model. That being said, as our survey indicates, executives still believe the customer relationship and data is squarely in their future domain. The 2024 Kerrigan OEM Survey cements the industry’s expectation that change is the only constant.”

Key OEM Survey Data

·        46% project profits will stay the same or increase in the next 12 months, while 54% expect a decline in the next 12 months an improvement from 69% in 2023.

·        62% expect new car margins to normalize above 2019 levels, while only 38% believe they will return to 2019 levels,

·        44% say new vehicle sales will increase over the next 12 months, 48% project sales will remain at 2023’s levels and 8% expect a decline.

·        Days’ supply of new vehicles is expected to normalize at 60-90 days in the next 12 months say 70% of respondents, up from 38% in 2023. 22% project days’ supply to remain within 30-60 days in the next 12 months, down from 59% in 2023.

·        81% of OEM executives believe the transition to EVs will be slower than originally planned.

·        64% do not expect to meet their EV sales goals, prompting 86% of respondents to reveal their organizations are developing contingency ICE production plans if EVs do not penetrate the market as expected. 

·        67% expect customer relationship/data will be shared by OEMs and dealers in the future, although 19% (a 16% increase from 2023) believe OEMs will exclusively own the data. 14% of respondents say the dealer will be the primary owner.

·        Only 18% of respondents projected an increase in facility requirements over the next 5 years, while 60% believe they will remain the same, and 22% anticipate a decline.

Methodology

The data for The Kerrigan OEM Survey was gathered from Kerrigan Advisors’ annual survey of automotive OEM executives in conjunction with the issuance of The Blue Sky Report®. The survey is based on over 110 responses from OEM executives in Kerrigan Advisors’ proprietary database. Responses were collected from December 2023 to June 2024.

·        To download the full Kerrigan OEM 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.

·        To access results from the latest Kerrigan Dealer Survey, 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 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 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.  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 Nick Alexander BMW to Car Pros Automotive Group includes MINI and Collision Center, and represents the 201st & 202nd dealership, 50th top luxury franchise sale led by Kerrigan Advisors since 2015

Los Angeles – August 28, 2023 – Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented Los Angeles-based Nick Alexander Imports in the sale of Nick Alexander BMW and Nick Alexander MINI to Renton, Washington-based Car Pros Automotive Group, the US’ 45th largest dealership group and owner of 10 dealerships, including four in Southern California. The transaction marks the 201st and 202nd dealership and 50th top luxury franchise sale since 2015. 

“It's been a great pleasure to work with the Alexanders, whom we've known for years and who will be missed in the automotive retail industry,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “We were aware that the decision to sell was understandably an emotional one for the Alexander family. With that in mind, our team worked hard to achieve a great financial outcome through a transaction that allowed the Alexanders to feel positive about the future of their business and their people. With the sale to Car Pros, the family was able to achieve that goal.”

The Alexander family has served the downtown Los Angeles market since 1978. Nick Alexander BMW is a multiple winner of BMW's "Center of Excellence" and "President's Cup” awards. Nick Alexander MINI ranks 3rd highest volume in the US by 2022 new MINI sales.

“We have owned this BMW franchise for 44 years, so the decision to sell was not an easy one. You only sell once, and we needed the best representation in the business to ensure a smooth transaction and to find a buyer who could represent the best interests of the franchise, employees and community” said Nick Alexander, Co-owner and Operator of Nick Alexander Imports. “We’ve known Ryan and Erin Kerrigan and Kerrigan Advisors for years, and we knew that when the decision to sell came, they were the only choice to represent our family. Their proven track record of successful sales continued with this transaction.”

Nick Alexander BMW, MINI and its collision center are housed in renovated, state-of-the-art facilities serving the rapidly growing downtown Los Angeles (LA) market, which is thriving under massive real estate development. Downtown LA has become a highly desirable place to live and is home to some of the US’ largest corporations. Los Angeles is the nation’s largest car market and its economy ranks as the 2nd and 18th largest economy in the US and world, respectively.

“We have benefited from Kerrigan Advisors’ guidance throughout the sale process, from start to finish. Our transaction was a unique one in multiple ways, including our location, large parcels of highly valuable real estate, and BMW operations intertwined with MINI to name a few,” said Elizabeth Alexander, Co-owner of Nick Alexander Imports. “The Kerrigan team was able to work through those complexities and ultimately identify a buyer who understood our operations, and valued our unique business and the opportunities it presented.” 

Los Angeles is the top luxury car market in the US and BMW is an industry leader among volume luxury brands: it has the second highest sales per franchise of all luxury brands and is one of the top luxury brands in Southern California. According to Kerrigan Advisors Q1 2023 Blue Sky Report®, the luxury import segment outperformed the domestic and non-luxury import segments by 85% and 202%, respectively, based on first quarter 2023 US light vehicle sales and appears to be somewhat insulated from rising interest rates, strengthening the segment’s valuations.

“We were honored to work with Nick, Elizabeth and their team in the sale of one of the automotive industry’s premier luxury brands in a top luxury market,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “The success of this transaction is more evidence that, with strong constantly high profitability and unit sales growth, luxury franchises continue to command elevated valuations, giving further ballast to the robust 2023 auto dealership buy/sell market.”

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

David Meyer, Hen Amir and Gus Paras of ArentFox Schiff served as legal counsel to the seller. Halbert Rasmussen and One Choi served as legal counsel to the buyer.

About Kerrigan Advisors

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

Kerrigan Advisors 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 2022 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:

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

Kinsel Toyota and Kinsel Ford, Lincoln, Mazda of Beaumont sold to Doggett Automotive Group; Transaction marks 182nd dealership sold since 2015 by Kerrigan Advisors, the premier sell-side dealership advisor to higher value dealerships and dealership groups

Incline Village, NV – May 2, 2023 – Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented Beaumont, Texas-based Kinsel Motors in its sale of Kinsel Toyota and Kinsel Ford, Lincoln and Mazda to Houston, Texas-based Doggett Automotive Group. Kinsel Motors recently celebrated its 100th anniversary of being in business in Texas and has been a mainstay in Beaumont since 1944.

“We were honored to work with the Kinsel family to identify a buyer to continue their family’s long legacy of exceptional customer service in Beaumont, Texas,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “The Kinsel family has served this auto retail market for over a century. The success of their dealerships, some of the highest volume in Southeast Texas, drove tremendous buyer demand, with Doggett ultimately being the best match for the family. Our team is very fortunate to work with exceptional dealer families, like the Kinsels, to ensure their personal and financial goals are paramount and most importantly achieved in a once-in-a-generation sale.”

“For four generations, Beaumont residents have counted on Kinsel Motors to help them buy and service their vehicles,” said Joe Bob Kinsel, co-owner of Kinsel Motors. “It has been our privilege to build something special here in Beaumont and the Southeast Texas community. We’re grateful to the community, and honored to have received so much friendship and support for the past 80 years.”

“Having this generational connection to Beaumont meant that getting this transaction right was the most important thing for our family,” continued Kinsel. “The Kerrigan Advisors team, particularly Erin Kerrigan, Marie Brashears and Mercedes Hendricks, were some of the most professional people we have ever worked with in our careers. Their attention to detail and tremendous commitment to their clients are what make them the best in the business.” 

“It’s been a privilege to manage and lead so many loyal and hardworking employees at Kinsel Motors,” said Craig Kinsel, President of Kinsel Motors. “The secret to our success is no secret — it has always been the people who come to work every day and provide stellar customer service. So, when it came to the mechanics of the deal, the guidance we received from Kerrigan Advisors was a critical factor in our success. While selling our business was a hard decision, choosing Kerrigan Advisors to represent us made it a much easier one. The process could not have gone smoother with Kerrigan leading the way.”

Texas is the 2nd largest auto retail market in the nation and generates the 4th highest revenue per dealership averaging $93 million in 2022, 30% higher than the national average. It is consistently the 2nd most requested state in Kerrigan Advisors’ buyer database and is arguably the most attractive in the nation given its high sales per rooftop and impressive growth. In 2022, Texas dealerships accounted for nearly 10% of total US dealership revenue.

“The Texas market remains in high demand by dealership buyers and this transaction shows how active the buy/sell market is for volume dealerships in high-growth, business-friendly areas. Texas is one of the largest economies in the world, and continues to experience above average population and economic growth,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “As a result, buyer demand for Texas dealerships continues to outstrip supply, resulting in top valuations for dealerships in the state.”

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

Stephen Dietrich and Sarah Seedig of Holland & Knight served as legal counsel to the seller. Monica Hoenshell of Calvert Law Firm served as legal counsel to the buyer.

About Kerrigan Advisors

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

Kerrigan Advisors 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 2022 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:

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

According to Third Quarter 2022 Blue Sky Report® by Kerrigan Advisors, dealership buy/sells increase 25% YoY as auto retailers overcome economic headwinds to achieve a 205% increase in earnings compared to pre-pandemic averages; dealers focus on expansion through acquisition with almost 50% planning to add one or more store, but low stock prices dampen public auto retailers buy/sells

Incline Village, NV – December 20th 2022 – Despite significant economic uncertainty, the auto dealership buy/sell market stayed in the third hot quarter of 2022 with a record 281transactions, according to the just-released Third Quarter 2022 Blue Sky Report® by Kerrigan Advisors. Completed dealership buy/sells increased 25% compared to the first nine months of 2021; and, for the 12 months ending September 2022, the buy/sell market recorded 439 completed transactions – an industry high. During the same time period, the average US dealership earned an estimated $4.24 million, a 205% increase from pre-pandemic levels.

The strong performance comes in the face of elevated inflation, rising interest rates and a volatile stock market, underscoring the countercyclical nature of the auto retail business model and the reason dealers continue to seek expansion. According to the 2022 Kerrigan Dealer Survey of over 600 dealers, nearly 50% plan to add one or more dealerships to their group in the next 12 months, while only 2% expect to divest. High volume dealerships, which benefit from sustainable earnings margins because of dealership-level economies of scale, according to the report, are in particular high demand and selling at a price premium.

“We see the current market as a robust seller’s market, one that will persist into 2023,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “There’s a significant capital surplus on dealers’ balance sheets. The industry is on pace for a third consecutive year of record earnings, despite declines in used car margins and some new car margins. Improvements in sales volumes, increases in fixed operations, and improved employee productivity have resulted in rising profits and have more than offset inflationary pressures and interest rates increases.”

With the industry entering its fourth year of historically high profits, buyers are beginning to adjust to the “new normal” of higher profits when valuing dealerships, basing valuation on elevated post-pandemic earnings, and discounting the possibility of a return to pre-pandemic levels. This calculus spurs an expectation that today’s higher blue sky values will sustain into 2023, consistent with the results of the Kerrigan Dealer Survey where the majority of dealers project unchanged valuations next year. These expectations are in line with the premium valuations Kerrigan Advisors continues to achieve on behalf of the firm’s clients.

Despite these positive expectations from most private dealers, public auto retailers’ acquisition activity decreased dramatically to 7% of buy/sell market share, from 29% in 2021, as their stock prices have declined. The Kerrigan Index (of the seven publicly traded US auto retail companies) was down 25% year-to-date through November, underperforming the S&P 500 by 76%. Blue sky multiples for publics now average just 2.9 times, compared to 8.0 times at their peak in 2020. The softening of the public groups’ buying power also led to a reduction in multi-dealership transactions for the third quarter which, Kerrigan Advisors expects, will lead to lower transaction activity in the fourth quarter 2022.

“Wall Street is reacting to the near-term impact of a potential recession and monitoring certain data points that could lead to a decline in dealership earnings, specifically inflation and interest rates,” continued Kerrigan. “Despite pent-up consumer demand, some fear new car sales could remain at today’s depressed levels, even if supply improves, due to softening consumer demand caused by rising interest rates and declining affordability.”

In spite of recessionary risks, Kerrigan points out that there are reasons to be optimistic that OEMs will not revert to oversupplying the market this time. Since the pandemic, OEMs have seen that their greatest profitability comes from appropriately supplying the market with vehicles. Ryan Kerrigan, Managing Director at Kerrigan Advisors notes, “We believe this supply discipline will result in lower days supply going forward and help to sustain higher new vehicle gross margins, providing some counterbalance to any decline in demand as a result of a recession.”

Third Quarter 2022 Buy/Sell Trends

Kerrigan Advisors has identified the following three trends which it expects to meaningfully impact the buy/sell market for the remainder of the year and into 2023:

·       Dealers’ valuation outlook begins to diverge more significantly by franchise

·       Scale on a dealership level results in price premiums for higher volume dealerships

·       Buyers remain skeptical of OEMs’ plans to disrupt the industry with new technologies and retail strategies

Kia and Hyundai Multiples Increase; Ford Sees Reduced Multiple; Honda’s Multiple Outlook Changed from Steady to Negative

For the third quarter of 2022, Kerrigan Advisors increased the multiples for Kia and Hyundai to 4.0 on the low-end and 5.0 on the high-end and reduced Ford’s multiple to 3.25 on the low-end and 4.25 on the high-end. For the first time, Kia and Hyundai franchises surpassed Toyota in the fourth annual Kerrigan Dealer Survey to become the franchises most expected to increase in value in 2023. This is consistent with rising buyer demand based on Kerrigan Advisors’ transaction work nationwide.

“Buyers are impressed with Kia and Hyundai’s ability to increase market share, grow their UIO count, and remain disciplined with their dealer network,” said Ryan Kerrigan. “We see this resulting in rising sales per franchise. Kia and Hyundai have worked closely with their dealer body to grow market share and maintain their tremendous profit improvement since the pandemic.”

Ford’s reduced multiple is mostly due to the barrage of announcements regarding changes to its retailing model with the rollout of EVs. While some higher volume dealers and top groups show optimism for the franchise, the majority of dealers, especially smaller dealers, have a negative outlook on the new sales structure and the investment requirement. Almost 60% of dealers surveyed by Kerrigan Advisors believe Ford’s planned changes to their dealer model will have a negative impact on future franchise profitability. With this multiple adjustment, Kerrigan Advisors retains a negative outlook on Ford’s blue sky multiple given the risk of declining buyer demand for the franchise.

Kerrigan Advisors also downgraded the outlook for Honda’s blue sky multiple this quarter. Honda had the largest decline of any import franchise in Kerrigan Advisors 2022 Dealer Survey and was the second worst performer behind Ford, when compared to the 2021 survey results. Kerrigan Advisors believes this negative sentiment is primarily a result of Honda’s market share loss due to significant sales declines, most notably relative to Kia and Hyundai.

Highlights from the Q3 2022 Blue Sky Report® by Kerrigan Advisors include:

·       A record 281 dealership buy/sell transactions were reported through the third quarter of 2022, resulting in 439 transactions for the 12 months ending September 2022.

·       The average US dealership earned an estimated $4.24 million, a 205% increase from pre-pandemic levels for the 12 months ending September 2022.

·       Kerrigan Advisors’ 2022 Dealer Survey found that 74% of surveyed dealers expect dealership earnings to remain at today’s currently elevated levels or increase to new highs in 2023.

·       Almost 50% of dealers surveyed for the 2022 Kerrigan Dealer Survey plan to add one or more dealerships to their group in the next 12 months, while only 2% expect to divest.

·       Kerrigan Advisors expects that the fourth quarter will see a decline in buy/sell activity relative to the fourth quarter of 2021 when a record 158 transactions closed, largely due to a reduction in multi-dealership transactions, particularly mega transactions.

·       Multi-dealership transactions decreased from 2021’s 35% of total transactions to just 25% in 2022, predominately as a result of the publics’ reduced buying power.

·       Import non-luxury franchises sustained market share increases from the first half of the year, comprising 38% of the buy/sell market for the first 9 months of 2022.

·       The public auto retailers spent more than $3.2 billion on stock buybacks year-to-date, a 43% increase over the same period in 2021. By contrast, they allocated just 24% of their capital, $1.23 billion, to US dealership acquisitions, a 43% decline from the same period last year.

·       Stock price volatility, demonstrated by The Kerrigan Index being down 25% year to date through November, has decreased the publics’ buy/sell market share to 7% from 29% in 2021.

·       As of the third quarter, the average blue sky multiple for the industry’s public companies was just 2.9x.  

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

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

About Kerrigan Advisors 

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

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

Kerrigan Advisors Media Contact:

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

Earnhardt Volkswagen and Rodeo Kia in the Phoenix metro area sold to Ken Garff Automotive Group; marks 177th dealership sale led by Kerrigan Advisors since 2015, and the 5th dealership sold by Kerrigan Advisors in Arizona since 2020, making the firm the most active in the state

Incline Village, NV – December 14, 2022 – Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented Phoenix, Arizona-based Earnhardt Auto Centers in its sale of Earnhardt Volkswagen in Gilbert-Chandler, and Rodeo Kia in Avondale to Salt Lake City, Utah-based Ken Garff Automotive Group (the 9th largest US dealership group by 2021 new unit sales). Earnhardt Auto Centers is one of the largest US family-owned dealership groups, most recently ranked No. 18 on Automotive News' list of the Top 150 Largest US Dealership Groups.

With this transaction, Kerrigan Advisors has now sold six dealerships on behalf of the Earnhardt family. The transaction marks the 177th dealership sale led by the firm since 2015, and the 5th Arizona dealership sold by Kerrigan Advisors since 2020, making Kerrigan Advisors the most active dealership sell-side advisor in the state.

“We continue to be impressed with Kerrigan Advisors. The team are experts, hardworking and the best in the business, especially when it comes to accurate valuations that ensure a successful sale,” said Dodge Earnhardt, Co-Owner of Earnhardt Auto Centers. “As high-volume dealerships with popular brands in greater Phoenix, it was critically important to sell our Kia and Volkswagen dealerships to a buyer who could realize the stores’ full potential. Kerrigan Advisors again found us the perfect buyer in the Ken Garff Automotive Group.”  

“It was a sincere pleasure and honor to once again represent the Earnhardt family in the sale of their valuable dealerships and property,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors.  “The success of these dealerships, the power of their brands and the strength of the Phoenix market - one that our firm knows well – created tremendous buyer demand. We congratulate the Ken Garff Automotive Group on another successful purchase in one of the best auto retail markets in the country.”

“Kerrigan Advisors helped us find the right buyer in this market,” said Derby Earnhardt, Co-Owner of Earnhardt Auto Centers. “These dealerships are located in affluent Phoenix suburbs. Kerrigan Advisors’ extensive knowledge of the buyer community, particularly for Phoenix, ensured the right buyer for our stores. No other advisor can match Kerrigan in that regard. There’s a reason this is the 6th dealership we have sold with Kerrigan Advisors. We cannot recommend them enough to other dealers considering a sale.”

Kia, as a top brand in the Phoenix market, boasts a 40% higher market share in the Phoenix area than the national average, and Rodeo Kia is the top-ranked dealership in sales experience for all Kia stores in the market. Earnhardt Volkswagen is the 2nd highest volume VW dealership in the Phoenix metro and is located in Gilbert-Chandler, a top retail area in Phoenix.

“Despite some challenging economic headlines nationally, the Phoenix market remains one of the highest demand metros in the US, just as Kia is among the hottest brands for buyers,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “According to our recent Kerrigan Dealer Survey, Kia surpassed Toyota for the first time to become the brand dealers most expect to increase in value in 2023. There’s no doubt that Kia and Phoenix are an ideal match in terms of growth and opportunity.”

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

Kerrigan Advisors monitors conditions in the buy/sell market and publishes an in-depth analysis each quarter in The Blue Sky Report®, which includes Kerrigan Advisors’ signature blue sky charts, multiples, and analysis for each franchise in the luxury and non-luxury segments. To download a preview of the report, click here. The firm also releases monthly The Kerrigan Index™ composed of the seven publicly traded auto retail companies with operations focused on the US market. The Kerrigan Auto Retail Index is designed to track dealership valuation trends, while also providing key insights into factors influencing auto retail. To access The Kerrigan Index™, click here. To read the 2022 Kerrigan Dealer Survey, click here. Kerrigan Advisors also is the co-author of NADA’s Guide to Buying and Selling a Dealership.

About Kerrigan Advisors

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

Kerrigan Advisors Media Contact:

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

Sale of two Toyota and two Lexus dealerships marks the 170th transaction led by Kerrigan Advisors, the leading advisor to Toyota and Lexus dealers nationwide since 2015

Incline Village, NV – November 1, 2022 –– Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented Spartan Auto Group and the Criscuolo family in its sale of Toyota and Lexus dealerships in Central and Southeastern Michigan: Spartan Toyota in Lansing, Wolverine Toyota in Dundee, Lexus of Ann Arbor, and Lexus of Lansing. The dealerships were sold to the Germain Automotive Partnership (Spartan Toyota, Wolverine Toyota, Lexus of Ann Arbor) and Serra Automotive (Lexus of Lansing). Serra Automotive is the 12th largest US automotive group. The transactions mark the 12th & 13th Lexus and 19th and 20th Toyota dealerships sold by Kerrigan Advisors since 2015, making the firm the leading sell-side advisor to Toyota and Lexus dealers in the industry.

“It was our honor to work with the Criscuolo family on this generational transaction,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “The Criscuolos have been prominent representatives for Toyota and Lexus in Michigan since the 1980s and were visionary partners for these OEMs in the Upper Midwest. Rosario Criscuolo will forever be remembered as a pioneer in automotive retail in the state of Michigan. These transactions further confirms the depth of interest amongst growing dealer groups for adding Toyota and Lexus dealerships to their portfolios.”

Established in 1984, Spartan Auto Group has become an integral part of the communities it serves, thanks to the values instilled by founder Rosario Criscuolo. The group’s legacy of high performance is evidenced by its award-winning history: Spartan Toyota has won Toyota’s prestigious President’s Award 10 times by excelling in sales satisfaction, service satisfaction, market share attainment, vehicle delivery excellence and employee training certification.

“Our father taught us to focus on relationships. His credo was ‘relationships, not salesmanship.’ That’s what made doing business at our dealerships such a special and memorable experience,” said son and co-owner Derek Criscuolo. “We are grateful to have experienced such a positive working relationship with Kerrigan Advisors whose comprehensive, focused and sensitive approach throughout the process ensured that all our family’s goals and objectives were met.”   

Rosario Criscuolo’s personal approach to car sales and service helped to create a uniquely Michigan feel to Spartan Auto Group dealerships, whether in Ann Arbor, Dundee, or Lansing. “Our father created a small town feeling in all of our stores, and that was true even in dealerships that served larger cities like Lansing,” said daughter and co-owner Deanna Criscuolo. “That family feeling of comfort and belonging is his legacy, and we’re grateful that with Kerrigan Advisors’ support through every phase of the transaction process - from sale preparation and marketing to negotiations and closing - that legacy will be successfully passed on to Germain and Serra, both highly regarded Midwest dealership groups.” 

Toyota and Lexus are the most sought-after franchises by buyers in today’s active buy/sell market, according to Kerrigan Advisors’ second quarter Blue Sky Report. Toyotas and Lexus’ industry-leading sales per franchise, robust profitability, and strong dealer/OEM relations make these franchises highly attractive investments for most growing dealer groups. Kerrigan reports that nearly as many Toyota franchises have traded hands in the first half of 2022 as Chevrolet, Ford and Chrysler, Jeep, Dodge, and Ram (CJDR) franchises, despite having less than half of the number of US franchises. Also, Lexus has the highest sales per franchise of all luxury franchises, outperforming BMW and Mercedes by 31% and 46% respectively, and the fewest number of dealers in its network for top luxury brands, resulting in a highly profitable and valuable franchise network.

“We were proud to lead these transactions for Spartan Auto Group and guide them to well-established buyers with strong ties to the region,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “The success of these dealerships is a tribute both to the Criscuolo family and to the power of the Toyota and Lexus brands, illustrating how the combination of decades of dedication to building the business, exceptional dealer/OEM relationships, and a right-sized franchise network results in high valuations.”

The transactions mark the 167th, 168th, 169th, and 170th dealerships sold by Kerrigan Advisors since 2015, bringing the total number of franchise sales they have led in 2022 to 40, and marking their 8th multi-dealership transaction for the year.

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

About Kerrigan Advisors 

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

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

Kerrigan Advisors Media Contact:

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

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

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

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

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

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

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

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

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

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

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

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

About Kerrigan Advisors 

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

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

Kerrigan Advisors Media Contact:

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

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

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

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

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

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

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

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

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

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

About Kerrigan Advisors 

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

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

Kerrigan Advisors Media Contact:

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