Sale of the second highest volume Kia dealership in the largest car market in the US marks Kerrigan Advisors’ 20th Kia rooftop sold and 287th dealership sold since inception

CERRITOS, CA – March 19, 2025 – Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented Lou Sobh Automotive Group in the sale of its Kia of Cerritos dealership in California to Trophy Automotive Dealer Group. This transaction represents Kerrigan Advisors’ 287th dealership, and the 20th Kia franchise the firm has sold since 2015, including five of the top 15 volume Kia stores nationwide. Kia of Cerritos is the second highest volume Kia dealership in the US and is located in the country’s largest auto mall, Cerritos Auto Square.

The Lou Sobh Automotive Group, owned by Lou and Mike Sobh, operates nine dealerships representing Honda, Kia, Volkswagen and Mazda across Georgia, Florida, and Mississippi. Kia of Cerritos was the family’s only dealership in California. LA-based Trophy Automotive Dealer Group was founded in 2013 and has six award-winning dealerships in Southern California.

“We were honored to represent the Lou Sobh Automotive Group in the sale of Kia of Cerritos, consistently one of the top five-volume Kia dealerships in the US,” said Ryan Kerrigan, Managing Director and Head of Real Estate Advisory at Kerrigan Advisors. “The Sobhs have been outstanding stewards of the Kia brand in this vitally important Southern California market and continue their strong partnership with Kia with multiple dealerships in the Southeast. It was a privilege to collaborate with the entire Sobh team in this significant transaction.”

Although the Sobh family has been rooted in the greater Atlanta area for over 20 years, in 2010, recognizing the appeal of the Los Angeles County car market – the US’ largest car market – and with a foundation of great success with the Kia brand in the Southeast, the Sobhs acquired Kia of Cerritos and built it into one of California’s highest volume Kia dealerships. With this milestone achieved, the Sobh family - which has been expanding their dealership network across the Southeast - made the decision to sell the Cerritos dealership so they could direct their efforts on projects in the Southeast.

“The Sobh family’s long-standing commitment to the Kia brand and loyal base of employees and customers, coupled with its incredibly strong performance, generated strong buyer interest, which in turn drove up the value of this franchise,” said Ryan Kerrigan. “Our entire team, which has deep knowledge and expertise in the Southern California market, worked closely with the Sobhs to pinpoint a buyer who not only demonstrated commitment to the community, but also a deep understanding of the market and a track record of success with the Kia brand. Trophy Automotive ticked all these boxes, and more, including offering opportunities for Kia of Cerritos employees to grow within the region, as they also operate Kia of Carson, Kia of Downtown LA, and several other locations.”

Los Angeles is the second largest metro area in the US with 12.8 million residents, and has a thriving economy rooted in transportation, technology, defense and entertainment, with major employers like Google, SNAP, Northrop Grumman, Walt Disney and Live Nation. A top-performing Kia market, with 15 Kia dealerships, Los Angeles has seen the brand’s market share grow by 35% since 2018 – the highest increase among all volume non-luxury import franchises.

“We knew choosing Kerrigan was the right decision, given their deep knowledge of the California dealer market and the Kia brand, not to mention an advisory process that engaged every Kerrigan team member, from accountant to principal, focused on the success of our sale,” said Mike Sobh, Co-owner of Lou Sobh Automotive Group. “As our team focuses its efforts on growing our footprint in the Southeast, it was so important to be able to depend on Kerrigan to identify a capable buyer – one that will continue to provide new career opportunities for our fantastic employees and further enhance the legacy of Kia of Cerritos. We extend our gratitude to all our employees and the community for the nearly 15 years of support.”

Kia franchises are highly sought after due to strong sales growth, high and growing throughput per franchise, an award-winning product lineup and expected increases in franchise valuation. In 2023, the brand recorded 782,000 vehicle sales—a 186% increase since 2008—doubling its non-luxury market share to over 6% and achieving the third-highest ranking based on annual sales per franchise among non-luxury brands. Kia also leads in growth, with a 25% sales per franchise increase since 2019, and 86% of dealers expect franchise values to rise or remain steady in 2024. Recognized for quality and value, Kia earned the most awards of any OEM in J.D. Power’s 2023 APEAL study, with the Telluride, Sportage, and Soul named Best Cars for the Money in 2024.

“This transaction not only highlights the power of the Kia brand overall, and particularly in the buy/sell market, but also the strong interest today’s auto dealership buyers have in acquiring marquee, high-volume franchises like Kia of Cerritos,” said Erin Kerrigan, Founder & Managing Director of Kerrigan Advisors. “We are proud to have utilized our extensive sell-side expertise with Kia—completing our 20th Kia transaction since 2015. It was a privilege to assist the Sobh family and their executive team in achieving this significant milestone.”

About Kerrigan Advisors

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

Kerrigan Advisors monitors conditions in the buy/sell market and publishes an in-depth analysis each quarter in The Blue Sky Report®, which includes Kerrigan Advisors’ signature blue sky charts, multiples, and analysis for each franchise in the luxury and non-luxury segments. To download a preview of the report, click here. The firm also releases monthly The Kerrigan Index™ composed of the seven publicly traded auto retail companies with operations focused on the US market. The Kerrigan Auto Retail Index is designed to track dealership valuation trends, while also providing key insights into factors influencing auto retail. To access The Kerrigan Index™, click here. To read the 2024 Kerrigan Dealer Survey, click here. To read the 2024 Kerrigan OEM Survey, click here. Kerrigan Advisors also is the co-author of NADA’s Guide to Buying and Selling a Dealership.

Kerrigan Advisors Media Contact:

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

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

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

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

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

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

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

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

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

About Kerrigan Advisors

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

Kerrigan Advisors monitors conditions in the buy/sell market and publishes an in-depth analysis each quarter in The Blue Sky Report®, which includes Kerrigan Advisors’ signature blue sky charts, multiples, and analysis for each franchise in the luxury and non-luxury segments. To download a preview of the report, click here. The firm also releases monthly The Kerrigan Index™ composed of the seven publicly traded auto retail companies with operations focused on the US market. The Kerrigan Auto Retail Index is designed to track dealership valuation trends, while also providing key insights into factors influencing auto retail. To access The Kerrigan Index™, click here. To read the 2024 Kerrigan OEM Survey, click here.  To read the 2023 Kerrigan Dealer Survey, click here.  Kerrigan Advisors also is the co-author of NADA’s Guide to Buying and Selling a Dealership.

Kerrigan Advisors Media Contact:

mWEBB Communications

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

Dealership buy/sell transactions increased to a record 403 in the trailing twelve months as of March according to the First Quarter 2024 Blue Sky Report® by Kerrigan Advisors, driven by a rise in the number of sellers coming to market, providing buyers more options for capital deployment

Kerrigan Advisors introduces the Kerrigan Blue Sky Index

Incline Village, NV – June 24, 2024 – The auto dealership buy/sell market experienced another record quarter with 109 completed dealership transactions completed in the first quarter of 2024 representing 233 franchises sold, up 38% compared to the first quarter of 2023, according to the just-released First Quarter 2024 Blue Sky Report® by Kerrigan Advisors. This was driven by an increase in the number of sellers coming to market, without a concomitant rise in buyers, transitioning the 2024 buy/sell market in favor of buyers for the first time since the pandemic. At this pace, Kerrigan Advisors expects the 2024 buy/sell market to exceed 400 transactions.

“The 2024 buy/sell market remains robust, hitting new records despite high interest rates and declining industry profitability,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “This burgeoning buyers’ market is putting additional downward pressure on blue sky values, particularly as dealership earnings retreat further from their pandemic-induced high. As earnings trend downward, more private dealers are deciding to exit, particularly while their blue sky valuations remain above pre-pandemic levels.”

Through the first quarter of 2024, Kerrigan Advisors estimates average dealership earnings declined 7%, resulting in average industry net to sales of 4.5%, 2.2 percentage points below 2022’s peak. Much of the earnings decline is a result of softening new vehicle margins, which ended the quarter 35% lower than 2022, due to increasing new vehicle inventories.

Kerrigan Advisors Launches the Kerrigan Blue Sky Index

In order to track industry valuation fluctuations since 2019, Kerrigan Advisors has launched the Kerrigan Blue Sky Index, which reflects changes in average industry blue sky values each quarter. For the first quarter of 2024, the Kerrigan Blue Sky Index declined 7% from the fourth quarter of 2023; however, the index remains 80% higher than 2019.

“We are pleased to introduce the Kerrigan Blue Sky Index as a barometer for automotive retail and blue sky values. We hope the index becomes a helpful tool to dealers as they assess fluctuations in their franchise values,” continued Erin Kerrigan. “While the Kerrigan Blue Sky Index is down this quarter, there are exceptions to this broader industry trend. Top import franchises in economically vibrant markets continue to achieve record valuations in today’s buy/sell market, particularly franchises in Texas and Florida.”

The Kerrigan Blue Sky Index is bolstered by Kerrigan Advisors’ industry leading sell-side advisory experience and transaction completion volume: 273 dealership transactions completed since 2014 representing over $8 billion in client proceeds. The Index is benchmarked at 100 on December 31, 2019, and will be adjusted for changes to average industry blue sky values each quarter. 

2024 Earnings Considered the New Normal, Blue Sky Multiples Reverting to Historical Mean

During the pandemic there was an inverse relationship between the US public dealer groups’ quarterly earnings and blue sky multiples. Wall Street correctly assumed industry earnings would skyrocket after the fourth quarter of 2020, and publics were trading at an eight multiple. When earnings reached their peak in 2022, Wall Street again correctly estimated profits would normalize at lower levels and thus assumed a low blue sky multiple of 2.9 times peak earnings.  

“With industry earnings now normalizing at a more sustainable level, blue sky multiples are reverting to the historical mean, reflecting a return to valuation based on current industry performance, which better reflects future expectations,” continued Erin Kerrigan.

2024 Buy/Sell Trends

For the first quarter of 2024, Kerrigan Advisors identified the following three trends that the firm expects will meaningfully impact the buy/sell market this year:

·        Private dealers tap into outside equity partners to accelerate growth through acquisition

·        Captive finance companies increasingly critical to franchise profits and value

·        Fixed operations drives industry profits and blue sky

Kerrigan Advisors expects outside capital to continue to increase its investment in auto retail and to identify exceptional operators to financially support. Through 2023, the number of dealerships owned by private groups with outside capital is up 45% from 2021. When annualizing first quarter 2024 data, the average dealership achieved an impressive 23% return on equity, outperforming the S&P 500 by 110% and on average, auto retail returns have outperformed the overall S&P 500 by 92% on an annual basis since 2016. Clearly, auto retail has proven its case and will draw more capital from outside the industry as consolidation accelerates.

“With these kinds of impressive investment returns outside capital investors, including family offices, high net worth individuals and private equity firms, are actively seeking increased financial exposure to the industry,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “Many of these sophisticated investors are attracted to the tremendous consolidation opportunity presented by auto retail’s highly fragmented structure. As of the end of 2023, just 24% of dealerships were owned by the top 150 dealership groups, representing 30% of industry sales.”

Growth limitations placed on the largest dealership groups as a result of OEM framework agreements are also fueling outside capital’s interest in auto retail because they result in a less competitive acquisition marketplace for well-funded buyers.

As the auto retail market becomes increasingly competitive in 2024, franchises that have strong support from their captive finance company will outperform in sales, profit and, ultimately, value, predicts the report. Captives not only finance consumer vehicles, but they also often finance blue sky in a buy/sell transaction, so there is often a correlation between higher blue sky values and a stronger and more supportive OEM captive finance company. In 2023, captives represented 61% of new vehicle financing, a 23% increase from 2022. Going forward, Kerrigan Advisors expects these financial institutions will play a more impactful role not only in vehicle financing, but also in franchise value and the buy/sell market.

Lastly, Kerrigan Advisors expects fixed operations (service and parts) to drive industry profits and blue sky values in 2024. Fixed operations, which is a major contributor to dealership earnings, yields the highest profit margin in the business and its sales growth has outpaced vehicle sales for the last two years. Ultimately, dealerships with the strongest fixed operations and high fixed absorption rates are less reliant on cyclical vehicle sales, making their projected future earnings more reliable and leading to higher blue sky values.

Toyota and BMW Multiples Increased

For the first quarter of 2024, Kerrigan Advisors increased the multiples for Toyota and BMW as both OEMs continue to effectively and strategically play the industry’s transition to new powertrains with successful rollouts of hybrid EV models. Toyota is now leading the industry in hybrid sales with 37% market share in the first quarter, resulting in a 21% increase in total vehicle sales, outperforming the industry by 279%. Kerrigan increased Toyota’s multiple .25 to a range of 6.75 to 7.5.

“As a reflection of Toyota’s dominant position in the market, the company’s share price surged in the first quarter of 2024 as Tesla's has declined since the summer of 2023, validating Toyota’s measured approach to the EV transition,” said Erin Kerrigan. “It’s not surprising that buyer demand for Toyota franchises has increased, resulting in higher blue sky multiples as profit growth expectations for the brand continues to outperform the overall industry.”

In the case of BMW, its highly effective rollout of the EV versions of its popular ICE vehicles resulted in a continuation of the OEM’s leadership position in total luxury sales in 2024. BMW ended the quarter as one of the fastest selling brands, according to Edmunds, with a 31-day turnover rate of inventory in March. BMW’s success managing the evolving luxury market, particularly with EVs, further secures their position as the luxury US leader, resulting in increased buyer demand for the franchise. Kerrigan increased BMW’s multiple .25 to a range of 7.25 to 8.75.

Negative Outlook for Stellantis

For the first quarter of 2024, Kerrigan Advisors reduced its outlook for Stellantis. CDJR continues to underperform the industry in terms of sales, despite an overabundance of inventory. As a clear indication of weak buyer demand, Stellantis franchises in strong growth markets are seeing sharp declines in blue sky values, separating itself from the other two domestic franchises which are seeing greater stability in the market. As a result, Kerrigan lowered its outlook for Stellantis to negative and its blue sky multiple range from 3.0 to 3.75.

Highlights from the Q1 2024 Blue Sky Report® by Kerrigan Advisors include:

·        109 dealership transactions were completed, resulting in 233 franchises sold, a 38% increase from the first quarter of 2023 and a new record.  

·        Dealership earnings continue to decline from their pandemic-induced highs, although they are still 97% above 2019 levels.

·        Top import franchises in economically vibrant markets continue to capture record valuations, particularly in Texas and Florida. Buyer demand for these rare assets remains strong due to sustained levels of above average profitability supported by robust population growth. 

·        In the first quarter of 2024, import non-luxury franchises outperformed domestics in new vehicle sales growth, increasing by 12.5%, more than double that of the total market. Domestic sales declined 0.8%, with average days’ supply ballooning to 105 days, driving a decline in domestic new vehicle gross margins.

·        Import luxury buy/sell market share rose 145% in the first quarter of 2024 to 27%, up from 11% in 2023 and domestic buy/sell market share declined 35% compared to 2023 full year results.

·        As a result of enhanced adoption of data-driven systems and technology, including AI, the Top 150 Largest Dealership Groups expanded their share of the overall used vehicle market to 10% in 2023.

·        The US public dealer groups’ average blue sky multiple reached 5.3x at the end of the first quarter of 2024, a 47% increase from 3.6x a year ago, driving a dramatic increase in acquisition spending (totaling $1.19 billion in the first quarter of 2024).

·        By leveraging enhanced customer acquisition strategies, innovative technology and AI, the publics’ advertising expense per new vehicle retailed is 34% lower than the estimate for the US public dealer groups’ average.

The Blue Sky Report®, published by Kerrigan Advisors, is the auto retail industry's most comprehensive and authoritative quarterly report on dealership M&A activity, as well as franchise values. The quarterly report, received by over 11,000 industry recipients in 35 countries, includes analysis of all dealership transaction activity for the year, and lays out the high, average and low blue sky multiples for each franchise in the luxury and non-luxury segments. For more details and to preview the report, click here. To sign up to receive the quarterly report, click here.

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

About Kerrigan Advisors

Kerrigan Advisors is the leading sell-side advisor and thought partner to auto dealers nationwide. Since its founding in 2014, the firm has led the industry with the sale of over 270 dealerships generating more than $8 billion in client proceeds, including the third largest transaction in auto retail history – the sale of Jim Koons Automotive Companies to Asbury Automotive Group. The firm advises the industry’s leading dealership groups, enhancing value through the lifecycle of growing, operating and, when the time is right, selling their businesses. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, Kerrigan Advisors does not take listings, rather they develop a customized sales approach for each client to achieve their personal and financial goals. In addition to the firm’s sell-side advisory services, Kerrigan Advisors also provides a suite of consulting and investor services including acquisition and expansion strategies, valuation assessments and benchmarking, open point proposals and real estate advisory.

Kerrigan Advisors monitors conditions in the buy/sell market and publishes an in-depth analysis each quarter in The Blue Sky Report®, which includes Kerrigan Advisors’ signature blue sky charts, multiples, and analysis for each franchise in the luxury and non-luxury segments. To download a preview of the report, click here. The firm also releases monthly The Kerrigan Index™ composed of the seven publicly traded auto retail companies with operations focused on the US market. The Kerrigan Auto Retail Index is designed to track dealership valuation trends, while also providing key insights into factors influencing auto retail. To access The Kerrigan Index™, click here. To read the 2023 Kerrigan Dealer Survey, click here. To read the 2023 Kerrigan OEM Survey, click here. Kerrigan Advisors also is the co-author of NADA’s Guide to Buying and Selling a Dealership.

Kerrigan Advisors Media Contact:

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

Sale of the top selling brand in San Antonio and Houston highlights buyers continued interest in leading franchises in high-growth markets; transaction represents the 17th franchise sold by Kerrigan Advisors in Texas in the last 12 months

San Antonio & Houston, TX – June 18, 2024 – Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented the Toomey family in the sale of Alamo Toyota in San Antonio, Texas to Shottenkirk Auto Group and Tejas Toyota in Houston, Texas to Vaughan Automotive. With the completion of these transactions, Kerrigan Advisors has represented on the sale of 47 Toyota/Lexus dealerships since 2014 (14 in the last 12 months) and 17 Texas-based franchises in the last year, making the firm the leading sell-side advisor in the state.

“My family is proud of our legacy of successfully representing Toyota in the great state of Texas for over five decades,” said John Toomey, Co-Owner, Alamo Toyota and Tejas Toyota. “We are incredibly grateful for the years of loyalty and support we’ve received from the Houston and San Antonio communities, as well as our employees and our customers. While the time was right for our family to sell our stores, it was certainly a difficult decision. We will greatly miss the business and our business family and look forward to seeing the dealerships thrive under new ownership with the Shottenkirk and Vaughan organizations.”

“This was a bittersweet decision for our family to sell; however, we were very grateful to be working with Kerrigan Advisors whose sensitivity to our needs matched their incredible strategic expertise in the industry,” said Richard Toomey, Co-Owner, Alamo Toyota and Tejas Toyota. “Our family has been avid readers of The Blue Sky Report® for many years and chose Kerrigan Advisors for their leading Toyota and Texas transaction experience, as well as their reputation for exceptional client service. True to form, Kerrigan Advisors surpassed our expectations. We feel very fortunate to have chosen Kerrigan Advisors to represent us on this once-in-a-generation sale process and would recommend them to any dealer family considering a sale.”

Texas is the largest, auto retail market in the Southern US, and ranks as the most economical state in the country in which to do business. Toyota is the #1 selling brand in both Houston and San Antonio, which are two of the four anchor metropolitan areas in Texas, and both are among the top ten fastest growing cities with two million+ populations. Given its high sales per rooftop, impressive growth and strong economy, Texas is the #2 most requested state by dealership buyers today according to Kerrigan Advisors.

“The Toomey family owned some of the most valuable dealerships in Houston and San Antonio and we were honored to be chosen to work with them to ensure their transaction was a success. It was critical that we fulfill each of their objectives for the sale and are proud to say that we were able to do so,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “We are confident that their long-standing reputation of service and positive imprint on their communities will continue in the hands of both these buyers. Thank you to the Toomey family for entrusting me and my team to shepherd the sale process from beginning to a successful outcome.”

Toyota franchises are highly sought-after due to their superior sales per franchise, strong fixed operations and robust profitability. In Kerrigan Advisors’ 2023 Dealer Survey, 93% of respondents expect the value of the Toyota franchise to increase or remain the same next year, the highest in the survey for the 5th consecutive year. Additionally, 98% of Kerrigan Dealer Survey respondents have a high or moderate level of trust in Toyota, making it the most trusted brand by dealers. Toyota also ranks the #1 brand requested by buyers in Kerrigan Advisors’ proprietary Buyer Database of 1,000+ buyers nationwide.

 “Toyota is the #1 brand in the industry and Texas is the #2 most requested state by buyers today, leading to valuation premiums and robust buyer demand,” said Ryan Kerrigan, Founder and Managing Director of Kerrigan Advisors. “As identified in Kerrigan Advisors’ 2023 Annual Blue Sky Report, while valuations are trending down for most franchises, import and luxury franchises in top growth markets are the exception. They continue to command strong valuations, in part because many are retaining pandemic-level earnings because of the growth dynamics in their markets. In light of all these factors, we were proud to help the Toomey family navigate the complexities of the strong buyer demand for their dealerships, and achieve a premium valuation.”

Susan White of White, Starling & Osterman was legal counsel to the Toomey family. George M. Taylor III of Burr & Furman was legal counsel to Shottenkirk Auto Group. Eric Prigden of Underwood & Roberts, PLLC was legal counsel to Vaughan Automotive.

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 270 dealerships representing more than $8 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 2023 Kerrigan OEM Survey, click here. Kerrigan Advisors also is the co-author of NADA’s Guide to Buying and Selling a Dealership.

Kerrigan Advisors Media Contact:

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

Sale of Northwest Chrysler Dodge Ram Jeep in Houston underscores demand for dealerships in high-growth, densely populated markets; Kerrigan Advisors leads the industry in buy/sell transactions, particularly in Texas – 17 franchises sold in 12 months

HOUSTON, TX – June 17, 2024 – Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented Salt Lake City, UT-based Ken Garff Automotive Group, the third largest private dealership group in the US, in its sale of Northwest Chrysler Dodge Jeep Ram “CDJR” to Victoria, TX-based Keating Auto Group. This transaction represents Kerrigan Advisors’ 17th Texas franchise sold in the last 12 months, cementing the firm’s leadership position in the state’s buy/sell market.

Ken Garff Automotive Group, ranked ninth largest US dealership group by Automotive News based on 2023 new unit sales, was founded by Ken Garff after opening his first dealership 90 years ago in Utah. The group has since expanded to nine states with 73 dealerships and 28 brands. Keating Auto Group is the 17th largest US dealership group and one of the largest in the state, with an estimated 30 dealerships across Texas.

“Once we decided to selectively divest this CDJR dealership, we knew Kerrigan Advisors was the only team to represent us,” said Brett Hopkins, CEO of Ken Garff Automotive Group. “We strive to work with the best service providers in the industry and have always valued our relationship with Kerrigan Advisors. True to form, they ran a sales process that was professional and efficient, resulting in an excellent financial outcome for all parties.”

Northwest CDJR, owned by Ken Garff Automotive Group since 2007, is located in the high-volume Northwest Houston auto retail market with a uniquely large market area for the franchises. Houston is known for its strong truck and SUV market where, in 2023, 78% of new units sold were light trucks, resulting in high revenue per vehicle for SUV and truck-focused franchises. This makes it a very attractive market for CDJR, given its robust lineup of SUVs and trucks. Stellantis is also an industry leader in plug-in hybrid vehicle sales, an increasingly attractive alternative to electric vehicles. Notably, Jeep dominates the plug-in hybrid market in Houston, with the Wrangler and Grand Cherokee ranking #1 and #2 in Houston, respectively, in 2023. 

 “We were thrilled to have the opportunity to work with the Garff team again,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “This transaction was a classic example of the extraordinary buyer demand for domestic dealerships in high-growth markets. And, as evidenced by the level of interest we saw in this high-volume metro store, Texas is one of the hottest markets in the country. As they say, everything is bigger in Texas! We are proud to have found the right buyer for this dealership, one who understands the scope of this market and who will continue Northwest CDJR’s success.”

Houston is the 2nd largest MSA in the state, home to 7.3 million and anchored by 26 Fortune 500 companies and a flourishing economy. In addition to being highly regarded as an economically vibrant city, Houston is considered one of the best places in the US to live and do business in. Home to 9,000+ technology-related firms, NASA’s Johnson Space Center and more than 1,000 venture-backed startups, Houston was rated the #1 Best Place for Foreign Business in 2023 by the Financial Times and the #1 Destination for Millennials to Move from Austin by Harvard University.

“I want to thank the Garff family for entrusting Kerrigan Advisors to serve as their exclusive sell-side advisor on this transaction,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “With an estimated 250+ new residents moving to Houston every day, the area has consistently ranked in the top five for population growth. Transactions like this continue to demonstrate that there is strong buyer demand for the fastest growing markets in the US, like Houston. We are proud to have helped shepherd this transaction to such a successful outcome and congratulate Ben Keating and his team on a stellar addition to the Keating Auto Group.”

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 270 dealerships generating more than $8 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 2023 Kerrigan OEM Survey, click here. Kerrigan Advisors also is the co-author of NADA’s Guide to Buying and Selling a Dealership.

Kerrigan Advisors Media Contact:

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

Sale of Gosch Ford Escondido to Aaron Automotive Group represents the 203rd dealership sold by Kerrigan Advisors since 2015; The sale confirms the strong interest of buyers in high volume markets with leading brands

INCLINE VILLAGE, NV – September 21, 2023 – Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented Hemet-based Gosch Auto Group in the sale of Gosch Ford Escondido to Aaron Automotive Group, led by Vikas Mehandroo. The transaction marks the 203rd dealership sold by Kerrigan Advisors since 2015 and the 32nd franchise sale in 2023, making the firm the most active in the industry.

“Kerrigan Advisors was honored to represent the Gosch family in this strategic divestiture of Ford Escondido,” said Gabe Robleto, Vice President, Sell-Side Advisory of Kerrigan Advisors. “It’s a complex business decision to sell a high performing dealership in a growth market. We’re pleased to have been able to identify a buyer who understood the value proposition of Ford Escondido and the attractive growth dynamics of Escondido and the San Diego market.”

The Gosch family opened their first Ford dealership in Southern California almost 60 years ago, when family patriarch Jack Gosch opened Jack Gosch Ford in downtown Hemet. His timing was impeccable, as it was just three months after the Ford Mustang was introduced. The Gosch family currently owns auto dealerships in Hemet, Temecula and Escondido. Over the years, the larger team grew to over 620 employees; collectively they have sold over 400,000 vehicles to local customers — and have serviced millions of cars.

“We’ve been successful in Escondido and in all of our locations because we know the communities we serve and our employees care about our customers, which is critical to a thriving dealership business,” said Marc Gosch, Co-Owner of Gosch Auto Group. “Kerrigan Advisors’ team offered that same level of commitment to us as their customer. The firm’s professionalism, deep industry knowledge and their team’s dedication to client service showed throughout this transaction. They understood our needs and expertly guided us through the sales process.” Eric Gosch, Co-Owner of Gosch Auto Group continued, “The Kerrigan Advisors’ team knew how to find the right buyer and meet the strategic transaction goals of our group. We were in excellent hands with Erin Kerrigan and Gabe Robleto leading the way. That’s why we chose them — we knew they would deliver the results we expected.”

Located in San Diego, one of the highest volume auto retail markets in California and ranked as the 12th best place to live in the US, Gosch Ford Escondido is a thriving image-compliant dealership representing the top domestic brand in California, Ford, which has one of the most popular lineups of trucks and SUVs. In 2022, the Ford Bronco ranked one of the top large SUVs sold in California and was named North American Car, Truck and Utility Vehicle of the Year. Escondido is a growing San Diego suburb, home to 153,000 residents, with a high-volume auto market and a population increase of 15% since 2000. The dealership has an expansive real estate footprint of over 9 acres in a high-traffic location, making it an optimal dealership to buyers.

“Buyers are attracted to high-volume markets that sell top brands like Ford, which is one of the leading non-luxury franchises in California,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors.  “This sale demonstrates the value proposition of Kerrigan Advisors’ professional sale process in identifying the best buyer at the highest blue sky value on behalf of our clients. We are thrilled for the Gosch family and grateful for the opportunity to represent them on this valuable transaction.”

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.

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

Kerrigan Advisors Media Contact:

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

First quarter 2023 completed transactions increase 43% compared to First quarter 2022, resulting in a record 405 transactions over a trailing 12-month period, driven by multi-dealership transactions, an increase in sellers coming to market, and private buyer interest in business-friendly states, according to the First Quarter 2023 Blue Sky Report® by Kerrigan Advisors

Incline Village, NV – June 26, 2023 – The auto dealership buy/sell market outperformed all previous first quarters on record in 2023, launching into the new year at a robust pace that saw 103 transactions completed — a 43% increase over the first quarter of 2022, according to the just-released Blue Sky Report® by Kerrigan Advisors. The first quarter results mean that a record 405 transactions have been completed in the trailing 12 months ending March 2023, an impressive 5.7% increase over 2021’s prior record and an 82% increase over the 2015-2019 pre-pandemic average of 223. This buyer demand was driven by a continuation of historically elevated industry earnings. Despite earnings declines for most dealers in the quarter — and a 25% drop for the publics — they remained well above pre-pandemic levels due, in part, to higher vehicle gross margins and lower operating costs.

“The economic contraction many had expected in 2023, due to rising interest rates and banking turmoil, did not materialize in the first quarter. A favorable combination of sellers coming to a market with strong buyer demand, particularly in growing population centers and business-friendly states, kept the buy/sell market very active,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “While valuations have come down slightly, they aren’t budging in top markets like Texas and Florida.”

Kerrigan Advisors notes that buyer demand for expansion in these high-growth markets may be underpinning the transaction activity. Franchises located in thriving, business-friendly states, such as Texas and Florida, are commanding steep price premiums as buyers anticipate that these states will likely outperform the industry in the event of a national recession. Longer term, buyers are recognizing the compounding impact of annual economic growth driven by net migration and lower taxes.

In addition, the buy/sell market of 2023 has been fueled by an increase in sellers who are seeking to capture today’s historically high dealership and real estate values in advance of a potential recession. “Many dealers who lack a succession plan realize today’s valuations may represent the exit opportunity of a lifetime, and next generation dealers may have also decided to sell due to concern over disruptions from EV adoption and direct-to-consumer OEM sales strategies,” said Erin Kerrigan.

Another significant characteristic of the first quarter was the record 29 multi-dealership transactions, representing 28% of the buy/sell market. Said Kerrigan: “The large number of dealership group sales in the quarter reflects private buyers’ tremendous access to capital, primarily from accumulated cash flow from operations over the last three years. The largest private groups doubled down on acquisitions in the first quarter, commanding 22% of the buy/sell market, as they deployed their capital war chests to expand their businesses geographically and increase scale.”

As private buyers dominated the buy/sell market in the first quarter - the Top 144 Private Dealership Groups collectively acquired a record 37 franchises - spending on US acquisitions by the publics declined 87%, from $606 million in the first quarter of 2022 to $78 million. This was in spite of net income of $1.2 billion in the first quarter of 2023, albeit 25% lower than the first quarter of 2022, but 290% higher than 2019’s quarterly average of $415 million. Volatility in the market, coupled with historically strong earnings, has depressed the publics’ blue sky multiples, limiting their pricing power for US dealership acquisitions. Generally, a public company will not acquire a dealership at a price that results in a dilution to its earnings per share. However, the public dealer groups spent a record $653 million, 38% of allocated capital, on international and affiliated business investments in the first quarter, more than the total amount spent for the full year of 2022, presumably because these investments’ valuations were more attractive.

For the first quarter of 2023, US light vehicle sales for the import luxury segment outperformed the domestic and non-luxury import segment by 85% and 202%, respectively, possibly due to insulation from rising interest rates. Given the limited number of top luxury franchises in the US and the deep pools of capital seeking acquisitions, Kerrigan Advisors expects some of these franchises will see their multiples increase in the coming quarters, should the trend of luxury outperformance continue.

2023 Buy/Sell Trends

For the first quarter of 2023, Kerrigan Advisors identified the following trends that may meaningfully impact the buy/sell market for the remainder of the year:

·       Highest volume franchises continue to command price premiums

·       Rising interest rates and banking sector turmoil increase acquisition financing costs

·       Buyers increasingly expect audited financials for the industry’s largest acquisitions

Ryan Kerrigan, Managing Director of Kerrigan Advisors said: “Consolidators are actively seeking volume franchises, and are willing to pay a significant price premium. Higher volume dealerships usually achieve above-average profit margins because the fixed expenses are much lower relative to revenue, resulting in significantly higher profitability and attractive economies of scale.” Kerrigan Advisors has observed that dealerships with over $100 million in revenue generally report double the operating margins of dealerships with under $50 million in revenue, enabling higher volume dealerships to achieve consistently elevated profit margins. Also, higher volume franchises are considered easier to operate with more margin flexibility and an ability to recruit top managerial talent.

Rising interest rates, meanwhile, are creating consequences for dealers looking to grow through acquisition — especially smaller dealers who rely on local and regional banks. Banks are passing on the rising costs from the FDIC in the form of higher fees and some are limiting their lending terms to be more conservative with their underwriting. Rising borrowing costs for acquisitions could lead to lower blue sky values later this year.

Finally, buyers are increasingly expecting audited financials. While all public auto retailers are required to maintain audited financials, many private dealers are not, because private dealers’ lenders or shareholders have not mandated it. In most industries, once a private company surpasses $200 million in revenue, an audit is either recommended or required. The lack of audited financials even for many of the Top 150 Dealership Groups is an industry anomaly.

Kia Multiple Increases, Moves Ahead of Hyundai; Honda and CDJR Multiples Decrease

For the first quarter of 2023, Kerrigan Advisors increased the blue sky multiple for Kia, now valued slightly above its sister brand, Hyundai. “This is a result of Kia’s continued success increasing sales per franchise to a level that surpasses Honda and Subaru,” said Ryan Kerrigan. “Buyer demand for Kia franchises continues to increase, thanks to rising dealership profitability, excellent dealer relations and reasonable facility requirements.” The blue sky multiple adjustment is also consistent with survey results from the Kerrigan Advisors 2022 Dealer Survey, when Kia was the franchise most expected by dealers to increase in value.  

Kerrigan Advisors reduced Honda’s blue sky multiple on the high-end to 6.0 from 6.25 due to declining buyer demand as a result of market share losses for the franchise. Kerrigan Advisors also reduced Stellantis’ (CDJR) high-end blue sky multiple to 4.0 from 4.25 — a direct result of the OEM’s mismanagement of its supply chain since the second quarter of 2022, resulting in an oversupply of vehicles, particularly expensive trucks. “With this reduction, we are moving the multiple outlook to steady, as it appears CDJR is focused on rectifying the oversupply of vehicles with an increase in targeted incentive spending,” continued Ryan Kerrigan.

Highlights from the Q1 2023 Blue Sky Report® by Kerrigan Advisors include:

·       103 dealership buy/sell transactions were completed in the first quarter, a 43% increase relative to the first quarter of 2022.

·       A record 29 multi-dealership transactions were completed in the first quarter of 2023, representing 28% of the buy/sell market.

·       The Top 144 Private Dealership Groups per Automotive News acquired a record 22% of franchises sold in the first quarter of 2023.

·       Kerrigan Advisors estimates that the Top 150 Dealership Groups collectively earned $48.6 billion pre-tax over the last three years.

·       The public dealer groups’ net income in the first quarter of 2023 of $1.2 billion declined 25% as compared to the first quarter of 2022, but was 290% higher than pre-pandemic, when the average quarterly net income in 2019 was $415 million.

·       Through the first quarter of 2023, the public dealer groups’ spending on US dealership acquisitions declined 87% from 2022 to $78 million, representing just 1% of US franchises acquired during the quarter. 

·       Volatility, combined with a continuation of historically strong earnings, has depressed the public dealer groups’ blue sky multiple, limiting their pricing power for US dealership acquisitions.

·       The public dealer groups spent a total of $653 million on international and affiliated business investments in the first quarter of 2023, more than the total amount spent for the full year of 2022 and a record 38% of capital allocated by the publics during the quarter.

·       Domestic franchises saw their share of the buy/sell market rise, with Ford, Chevrolet. Buick GMC and Stellantis (CJDR) leading the buy/sell market. Domestic dealers sought an exit due to proposed changes to their retail model with the transition to EVs. 

·       Some smaller dealer groups may be selling due to concern about EV adoption and direct-to-consumer OEM retail strategies. They see this as offering lower future profitability.

·       For US light vehicle sales, the import luxury segment outperformed the domestic and non-luxury import segments by 85% and 202%, respectively, in the first quarter.

·       The Kerrigan Index™ decreased 34% to a 27-month low in October 2022 reflecting volatility coupled with a continuation of historically strong earnings.

The Blue Sky Report®, published by Kerrigan Advisors, is the auto retail industry's most comprehensive and authoritative quarterly report on dealership M&A activity, as well as franchise values. The quarterly report, received by over 11,000 industry recipients in 35 countries, includes analysis of all dealership transaction activity for the year, and lays out the high, average and low blue sky multiples for each franchise in the luxury and non-luxury segments. For more details and to preview the report, click here. To sign up to receive the quarterly report, click here.

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

About Kerrigan Advisors 

Kerrigan Advisors is the 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. 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 strategy, market valuation assessments, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate due diligence.

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 over 11,000 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

Kerrigan Advisors Represents El Monte Honda in its Sale – The 10th Honda Dealership Kerrigan Advisors Has Represented for Sale since 2015

El Monte Honda sold to Car Pros Automotive Group

Irvine, CA., Tuesday, November 20, 2019 – Kerrigan Advisors, the leading sell-side advisory firm to auto dealers in the US, represented and advised on the sale of Los Angeles County-based El Monte Honda, owned by Steve Nelson and business partners, to Washington-based Car Pros Automotive Group. This is the first Honda dealership for Car Pros, a west coast-based automotive group with six dealerships located in Washington and Southern California.

This transaction marks the 81st dealership, and 10th Honda dealership, sold by Kerrigan Advisors since July 2015, making the firm the most active sell-side advisor in the auto retail industry.

 “El Monte Honda has been serving the Southern California community for decades,” said dealership partner Steve Nelson.  “When it was time to sell, we needed an advisor who could discreetly and accurately represent the opportunity.  Kerrigan Advisors has such deep experience representing Honda franchises, and they were able to successfully represent our interests and maximize the value of our business. My partners and I have operated many dealerships over the last 30 years. This has been among the smoothest transactions we have been party to, which would not have been possible without Kerrigan Advisors.”

“Advising Steve and his partners on the sale of El Monte Honda was a real privilege.  The buyer demand that we saw in the marketplace for El Monte Honda reflects the strength of today’s buy/sell market for top franchises, such as Honda,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “El Monte Honda is known for its professional approach to automotive sales and service, so we were determined to represent the partnership the same way and bring a buyer who would offer a continuation of those values.”

With this acquisition, Car Pros will now have six dealerships, including Kia in Huntington Beach, CA and Glendale, CA and Volkswagen in San Bernardino, CA, and Hyundai and Kia in Renton, WA and Kia in Tacoma, WA. “Car Pros is excited to expand our brand portfolio in Southern California with the Honda franchise,” said Matthew Phillips, Chief Executive Officer and Owner of Car Pros Automotive Group.

“El Monte Honda offered a unique opportunity to represent a top import franchise in one of the largest car markets in the US.  It was important that Kerrigan Advisors identify the best buyer for El Monte Honda, particularly one that met all of our client’s valuation expectations and transaction priorities,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “I am confident that Car Pros Automotive Group will continue to build El Monte Honda into one of the strongest Honda dealerships in the area.” 

Kerrigan Advisors is considered one of the top advisors to auto dealers in the US.  The firm exclusively represents on a select number of higher value transactions nationwide, such as El Monte Honda, overseeing and managing the process from beginning through a successful outcome. The firm’s managing directors are fully licensed with FINRA and have specific expertise in navigating the complexities associated with selling large enterprises with multiple owners and dealerships.

Brent Smith of Manning, Leaver, Bruder & Berberich served as legal counsel to the seller.  Christian Scali, Bert Rasmussen and Rita Campanile of Scali Rasmussen, PC served as legal counsel and Jason Meersman of Rekdal Hopkins Howard, PS served as an accounting advisor to the buyer.

About Kerrigan Advisors

Kerrigan Advisors is a leading 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 auto retail’s largest transactions, including five of the Top 100 Dealership Groups in the US, more than any other firm in the industry. Led by a team of veteran industry experts, the firm does not take listings, rather develops a customized approach for each client to achieve their 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, pro forma analysis, market value assessments, open point proposals, operational improvement and real estate due diligence.

Kerrigan Advisors publishes The Blue Sky Report®, which is received by over 9,000 industry recipients in 35 countries and is the auto industry's most comprehensive and authoritative quarterly report of dealership buy/sell activity and franchise valuations in the US. To access 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. In November 2019, Kerrigan Advisors released The Kerrigan Dealer Survey, the firm’s first-ever survey of over 650 franchised auto dealers, designed to gauge dealer sentiment about the future of their businesses and their perspective on franchise valuations. To read the Kerrigan Dealer Survey Report, click here (https://www.kerriganadvisors.com/the-kerrigan-dealer-survey/).

Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors, is a recognized 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, Automotive News’ Canadian World Congress, AICPA, and NADC. She has also been quoted numerous times by the Wall Street Journal, CNBC, Bloomberg and The Economist and has been a keynote speaker for events hosted by American Honda Motor Company, Audi of America, US Trust, Bank of America, Ohio Automobile Dealer Association, and SunTrust Bank. Ryan Kerrigan, Managing Director of Kerrigan Advisors, is a sought-after industry expert. He is featured in a monthly column for Dealer Magazine and has written Op-Eds for Automotive News.

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

Irvine, CA, -- February 26, 2019 – Kerrigan Advisors, the leading buy/sell advisor to auto dealers in the US, represented and advised Minnesota-based Village Automotive Group in its sale of Lexus of Wayzata, Lexus of Maplewood, and Village Chevrolet, to Chicago-based Ed Napleton Automotive Group, which operates more than 74 franchises in seven states and ranked #26 on Automotive News’ 2018 Top 150 Dealership Group list.

“After 70 years in the auto dealership business, our family’s decision to sell was a difficult one.  We are happy to see Village Automotive Group transition to another family-owned dealership group who will continue our customer service and employee-focused legacy,” said Steve Bloomer, President and CEO of Village Automotive Group.  “We are very grateful for the guidance and support that the Kerrigan Advisors’ team provided us in the sale process.  Erin Kerrigan’s expertise – from her deep understanding of the buy/sell market, transactions and dealership valuations to the OEM approval process – helped make our sale as smooth as possible.”

Founded by the Bloomer family in 1950, Village Automotive Group is one of the original ‘charter’ dealerships for Lexus in the US, has earned the Lexus Elite distinction for a combined 46 years, and operates the only Lexus dealerships in the state of Minnesota.  The company’s Village Chevrolet dealership in Wayzata has been owned and operated by the Bloomer family for nearly 70 years and is one of the oldest Chevrolet dealerships in the state.

“Kerrigan Advisors was invaluable to us in the sale of our dealerships,” continued Steve Bennett, Vice President, COO, and partner of Village Automotive Group, who has been active on Lexus dealer and product councils during his 38-year tenure with the company. “Mercedes Hendricks and Marie Brashears of Kerrigan Advisors were particularly helpful in preparing us for sale and managing the buyer due diligence process. We are very grateful for all of their hard work in making this sale a success.”

The most active sell-side advisor in the auto retail industry, Kerrigan Advisors has represented on the sale of 79 dealerships in the last five years, representing over $1.5 billion in client proceeds. In addition to its sell-side advisory work, Kerrigan Advisors consultancy offers strategic consulting services to dealers and their families, including growth planning, capital raising and valuation analysis, creating value every step of the auto retail lifecycle.  The firm’s full-service approach to dealer advisory has made Kerrigan Advisors the go-to thought partner for many of auto retail’s leading groups and families.

“Two things were clear when we were engaged by Steve Bloomer and Steve Bennett: the importance of selling to a buyer who would continue the Village Automotive Group’s extraordinary record of top customer service and the need for a transaction process that would do justice to the Bloomer family’s 70-year legacy in the automotive retail industry,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors.  “We are pleased that we found a buyer with a deep family legacy in the auto dealership business.  With the acquisition of Village Automotive Group, Napleton is adding a hugely respected group of dealerships, including some of the top Lexus franchises in the U.S., and entering the Minneapolis market for the first time.”

Kerrigan Advisors’ promise to its clients is to treat each sale as if it were their own.  Unlike some firms that simply operate as brokers, Kerrigan Advisors does not take listings or building up an inventory of dealerships for sale, rather the firm focuses on a select number of higher value transactions, such as the sale of Village Automotive Group, and ensures that each is completed to their client’s satisfaction. The firm’s managing directors are fully licensed with FINRA and have particular expertise in navigating the complexities associated with selling large family enterprises with multiple owners and dealerships.

Bill Jonason and Mark Hamel of Dorsey & Whitney LLP served as legal counsel to Village Automotive Group.  Jama Kris of Stinson Leonard Street LLP and Les Stracher served as legal counsel to Ed Napleton Automotive Group.

About Kerrigan Advisors

Kerrigan Advisors is the leading dealership buy/sell advisory firm focused exclusively on providing a high level of client service to dealership sellers nationwide. Led by a team of veteran industry experts, Kerrigan Advisors customizes each sale process to maximize the seller’s transaction proceeds. The firm has sold 79 dealerships in the last five years, 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’ buy/sell and capital-raising 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®, which is the auto industry's most comprehensive and authoritative quarterly report and analysis of dealership buy/sell activity and franchise values, received by over 9,000 industry recipients in 35 countries.  Kerrigan Advisors’ Founder & Managing Director, Erin Kerrigan, is a recognized 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, Automotive News’ Canadian World Congress, AICPA, and NADC. She has also been quoted numerous times by the Wall Street Journal and interviewed by The Economist and has been a keynote speaker for events hosted by American Honda Motor Company, Audi of America, US Trust, Ohio Automobile Dealer Association, and SunTrust Bank. 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.

Kerrigan Advisors Media Contact:
mWEBB Communications

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