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

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

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

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

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

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

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

About Kerrigan Advisors

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

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

Kerrigan Advisors Media Contact:

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

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 top volume Buick GMC and Chevrolet dealerships in Tennessee underscores the strong buyer demand in high-growth, business friendly markets in the Southern region; transaction marks Kerrigan Advisors’ 273rd dealership sale

MEMPHIS, TN – June 11, 2024 – Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented Memphis, Tennessee-based Sunrise Auto Group in the sale of Sunrise Wolfchase Buick GMC, the #1 Buick GMC dealership in Memphis, and Sunrise Buick GMC Collierville to Medford, Oregon-based Lithia Motors (NYSE:LAD). The completion of this transaction represents Kerrigan Advisors’ 273rd dealership transaction, including more than 80 in the Southern region since 2020, and more than 65 franchises sold year-to-date.

Owner Bob Berkheimer started Sunrise Auto Group 35 years ago in Memphis, the third largest metro area in the Southeast and home to a flourishing trade and transportation sector. Sunrise is the largest Buick GMC dealer in Memphis, capturing over 75% of Memphis’ Buick GMC sales. Wolfchase is the #4 Buick GMC dealership in Tennessee, and Buick GMC Collierville is the #4 Buick GMC dealership in Memphis and #7 in Tennessee. Sunrise is a decorated General Motors dealer, having earned several Mark of Excellence and Dealer of the Year awards. In addition, Buick GMC and Chevrolet are top performing domestic brands, ranking high in sales growth in 2023 and in the Kerrigan Advisors 2023 Dealer Survey for franchise valuation growth expectations in 2024.

“Kerrigan Advisors was extremely honored to represent Bob’s legacy in Memphis through the strategic sale of these high performing General Motors franchises to Lithia Motors, a new market for the company,” said Gabe Robleto, Senior Vice President, Sell-Side Advisory at Kerrigan Advisors. “It was a pleasure to work with him on this sale and identify the perfect buyer in Lithia for these powerhouse dealerships in the very attractive Tennessee market.”

“First and foremost, I want to thank our employees and the Memphis community for their steadfast support and loyalty over the past few decades,” said Bob Berkheimer, President of Sunrise Auto Group. “As I contemplated this sale, it was critical to find the right buyer to continue our legacy here. I am confident that the dealerships, including my employees, will continue to see great success under Lithia’s ownership.”

Bob continued: “We knew that the buy/sell process would be complicated, and we wanted to get it right, so we hired the firm that was recommended as the best in the business – Kerrigan Advisors. And they more than lived up to their reputation, guiding us with care, expertise and acumen every step of the way, completing the transaction.” 

Tennessee ranked #3 in America’s Top States for Business by CNBC, and Tennessee’s status as a business-friendly, right-to-work state, coupled with its absence of state income taxes, has driven substantial population growth. These attributes continue to drive strong buyer demand as described in Kerrigan’s 2023 Annual Blue Sky Report, which reports buyer demand for dealerships in the Southern states to be very high, particularly those markets with the highest population growth, strong franchise laws and business-friendly climates.

“The Southeast and, in this case, Tennessee, remains the go-to market for auto retailers, and we see most of the larger players in automotive retail seeking to expand their footprint in the South” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “Given current data trends, we expect this to be the case for the foreseeable future, and we were proud to support Bob on this very successful transaction.”

Stephen Dietrich and Brooke Sizer of Holland & Knight served as legal counsel to the seller.

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 Inland Empire Toyota dealership underscores strength of the industry’s most in-demand franchise in California’s fastest growing region; transaction marks Kerrigan Advisors’ 264th dealership and 31st Toyota franchise sale

INCLINE VILLAGE, NV – May 22, 2024 – Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented California-based Gosch Auto Group in the sale of Gosch Toyota to Kevin Naderi. Gosch Toyota dealership is located in the Hemet Auto Mall, a high-volume, non-luxury car market in California’s fastest growing region, the Inland Empire. This transaction represents Kerrigan Advisors’ 264th dealership and 348th franchise sold since its founding.

“I want to congratulate the Gosch family and thank them for entrusting Kerrigan Advisors with the sale of this very high-value Toyota dealership in this fast growing market,” said Gabe Robleto, Senior Vice President, Sell-Side Advisory at Kerrigan Advisors. “It was a pleasure to support the Gosch family in this sale, which also marks our 31st Toyota franchise sold since our firm’s founding.”

Gosch Auto Group, a family-run dealership group that currently owns auto dealerships in Hemet and Temecula, was founded in 1964 by Jack Gosch following his 11 years at the Ford Motor Company. He opened Gosch Ford in downtown Hemet just three months after the Ford Mustang was introduced. Recognizing the potential of the area, Jack joined with six other dealers and the city of Hemet to develop and build the Hemet Auto Mall in the mid-80s, shortly after his sons Eric and Marc joined the family business. Over the years, their team grew to more than 620 employees; collectively they have sold over 400,000 vehicles to local customers and serviced millions of cars.

“After 60 years of doing business in this incredible community, it was important to our family to transition the dealership to the right buyer for our valuable Toyota franchise, and we thank Kerrigan Advisors for helping us to do just that,” said Marc Gosch, Co-Owner of Gosch Auto Group. “In 1972, following the success we saw with our Ford dealership, we added Gosch Toyota to our group and over the years, we’ve created a long and successful relationship with Toyota. While it is difficult to part with a dealership that has been a part of our family for decades, we are pleased to continue serving the Hemet community with our Ford, Chevrolet and Hyundai brands.” 

"Having worked very successfully with Kerrigan Advisors previously, we knew we’d get the value and results in selling this desirable franchise. And, of importance, we knew that Kerrigan Advisors had a proven track record of maximizing franchise value,” said Eric Gosch, Co-Owner of Gosch Auto Group. “Not only did they ensure a smooth transition, the Kerrigan Advisors team displayed exemplary professionalism, expertise and guidance throughout our sale process, delivering results beyond our expectations.”

Toyota dominates the Inland Empire car market, capturing 24% market share in the non-luxury segment, exceeding California and US averages by 5% and 60%, respectively. Given its superior dealer-OEM relations, #1 ranking in trust, judicious approach to electric and hybrid vehicles, and high-volume business model, Toyota remains the most in-demand franchise in the industry, as evidenced by the success of this transaction.

“Toyota is in-demand in virtually every market, especially high-volume ones like the Inland Empire. We see very high buyer demand for the Toyota franchise nationwide, given dealers’ tremendous trust in the brand and the franchise’s high levels of profitability and earnings growth, which are the best in the business,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “It was such an honor to work with the Gosch family, whom I have known for well over a decade, and to bring this transaction to a successful and beneficial outcome for all involved 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 260 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

Dealership buy/sell transactions increased 6% YoY according to the Annual 2023 Blue Sky Report by Kerrigan Advisors; 680 franchises sold in 2023, an increase of 5.4% compared to 2022, defying broader corporate M&A trends

Incline Village, NV – April 9, 2024 – The auto dealership buy/sell market experienced a record year of buy/sell activity with 397 completed dealership transactions, up 6% compared to 2022, according to the just-released 2023 Blue Sky Report® by Kerrigan Advisors. This activity included the third largest transaction in auto retail history – the sale of Kerrigan Advisors’ client, Jim Koons Automotive Companies representing 20 dealerships and the addition of $3 billion of revenue to Asbury Automotive Group. Fueled by significant access to capital, auto retail defied the broader corporate mergers and acquisitions (M&A) market, which declined 30% in 2023. In 2023, 680 franchises were sold, an increase of 5.4% compared to 2022.

“Despite negative headwinds of higher interest rates and declining profit margins, dealers continued to seek acquisitions, powered by their belief that scale is not only critical to future success, but essential to sustaining their businesses in the face of an evolving industry,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “We expect the consolidation trend, ignited by the pandemic-induced surge in industry earnings, to continue in 2024 as the industry has amassed nearly a quarter of a trillion dollars of pre-tax earnings since the pandemic.”

To underscore this, Kerrigan noted that nearly half of the dealers surveyed by Kerrigan Advisors in November 2023 said they planned to acquire one or more dealerships in the next twelve months, while only 6% expected to sell dealerships in the same period. The Kerrigan Dealer Survey has the highest level of respondents of any survey in the industry at over 650.

The auto dealership buy/sell market’s outperformance relative to the broader corporate M&A market is, according to the report, a result of its distinctly private structure. The majority of dealerships are owned by private dealers, who on average own three dealerships, which minimizes the impact of the public capital markets on transaction fundamentals. “The private, fragmented composition of auto retail translates into a very insular buy/sell market, driven primarily by its own internal dynamics often unrelated to the broader public financial markets,” continued Erin Kerrigan.    

Dealership Valuations Decline Slightly, Publics’ Mark Second Highest Acquisition Spend

With an active buy/sell market driven by strong buyer demand, dealership valuations sustained historically high blue sky values in 2023, albeit lower, on average, than their peak in 2022. Kerrigan Advisors estimates that blue sky values declined on average 8% in 2023, far less than the estimated 26% reduction in industry earnings. The modest decline in blue sky is driven by buyers’ expected future earnings, not past performance.

“When earnings soared in 2021, buyers correctly projected that pandemic earnings were unsustainable and normalized earnings for valuation purposes. When earnings declined in 2023, these normalized expectations were already accounted for in most valuations and thus had less of an impact on blue sky,” said Kerrigan.   

The public dealership groups acquired 61 franchises for $2.7 billion in 2023, the second highest US acquisition spending level on record. Of note, Kerrigan Advisors was the only firm to represent sellers of dealerships acquired by the publics in 2023, selling 30 dealerships to the publics for total proceeds of $1.94 billion, representing 71% of the total public acquisition spending for the year.

The South Rises, Domestics Dominate Buy/Sell

Notably, there continues to be a clear regional bias towards business-friendly, high growth markets in the South. This region, which has led the buy/sell market for multiple years, saw its share rise to 42% in 2023, more than double that of the West and Northeast regions. Kerrigan Advisors finds buyer demand for dealerships in the Southern states to be very high, particularly those markets with the highest population growth, strong franchise laws and business-friendly climates. This trend is consistent with the record valuations Kerrigan Advisors continues to observe in many of these markets. 

Additionally, Detroit Three franchises represented the majority of the buy/sell market in 2023, taking significant share during the year. Kerrigan Advisors attributes the rise in domestics market share to an increase in the number of domestic sellers coming to market, as well as buyers’ attraction to their lower multiples. Many domestic sellers are concerned by their OEM’s electrification plans and are choosing to sell rather than manage through the EV transition.

Honda and Mazda Multiples Increased; Mazda and BMW Multiple Outlooks Upgraded to Positive

For the fourth quarter of 2023, Kerrigan Advisors increased the multiples for Honda and Mazda to reflect continued improvement in sales performance and stronger buyer demand for these franchises. Honda is regaining market share lost in 2022, resulting in its sales per franchise increasing at the fastest rate of any OEM, to second place behind Toyota.  

“Honda is the fourth most trusted brand in the industry and third most amongst non-luxury brands,” said Ryan Kerrigan, Managing Director at Kerrigan Advisors. “In our 2023 Dealer Survey, 83% of dealers expect the Honda franchise to increase in value or stay the same in 2024, above the non-luxury industry average of 78%.”

Mazda increased sales by 23% in 2023, nearly double the market rate and continues to benefit from its captive partnership with Toyota Financial Services, which was extended for another five years, resulting in an upgrade of Mazda’s blue sky multiple and outlook.

Kerrigan Advisors also upgraded BMW’s multiple outlook to positive to reflect the franchise’s outperformance in 2023, particularly with its successful EV product introductions. Kerrigan Advisors expects a future increase in the BMW blue sky multiple if buyer demand continues to rise. 

Mercedes, Nissan and Lincoln Multiples Reduced

Kerrigan Advisors reduced the multiples for Mercedes, Nissan and Lincoln. Mercedes faltered in its EV rollout, resulting in a rise in inventories and a steep reduction in gross profit margins. A softening in buyer demand for Mercedes franchises is reflected in the results of Kerrigan Advisors 2023 Annual Dealer Survey in which 14% of dealers surveyed had zero trust in the brand. Buyer demand also continues to wane for Nissan and Lincoln franchises as dealers report a lack of trust in the future of the franchise and concern about the OEM’s EV plans and ballooning inventories (140 days for Lincoln and 106 days for Nissan as of December 2023).

Kerrigan Advisors is also maintaining a negative outlook on the current blue sky multiples of Nissan, Ford, CJDR, Volvo, Lincoln and Infiniti. These franchises have the highest risk of future declines to their blue sky multiples, particularly as the auto retail market becomes more competitive and the success or failure of EV sales determines franchise profitability.  

2024 Buy/Sell Trends

In the 2023 Annual Blue Sky Report, Kerrigan Advisors identified the following three important trends that are expected to meaningfully impact the market in 2024.

·       Buyers increasingly focus on last twelve months’ financial performance to determine blue sky value

·       Top import and luxury franchises in growth markets continue to achieve record valuations

·      State electric vehicle (EV) mandates, if left unchecked, will have negative implications for blue sky values

2023 was the start of a shift in valuation methodology for blue sky as buyers are becoming increasingly focused on the last twelve months’ financial performance to determine blue sky value, according to the report.  “Going forward, active buyers are increasingly of the belief that current earnings reflect the “new normal” for our industry, so most buyers are starting to apply adjusted blue sky multiples to the most recent earnings when determining blue sky pricing, largely ignoring pandemic-period profits,” said Ryan Kerrigan. “In this regard, the second half of 2023 will serve as a significant driver of dealership valuation in 2024. The trend of emphasizing the most recent profitability will likely continue as we move through 2024.”

While valuations are trending down for most franchises, top import and luxury franchises in high growth markets continue to hit record valuations in part because many are retaining pandemic-level earnings due to growth dynamics in their markets. In addition to strong earnings performance, they have much more attractive investment characteristics. In 2023, import and luxury franchises outperformed the broader market in new vehicle sales growth, achieving 14% and 20% growth rates respectively, as compared to 11% for non-luxury and 7.6% for domestics.

Given a more challenging EV marketplace, dealers operating in CARB states will increasingly find their OEMs tested to meet the CARB EV sales thresholds required by state regulators. As currently planned, EV demand will determine total vehicle sales in CARB states starting in 2026 when 35% of vehicles sold must be electric.  “This target is aggressive given EV sales in 2023 are not near the threshold required in less than two years. A government-imposed limit on ICE sales by 2026 will impact the revenue and profits of dealerships located in CARB states, reducing a buyer’s projected earnings for those franchises,” said Ryan Kerrigan. “We believe that this decline in projected future earnings will negatively impact the blue sky values of these franchises, perhaps as early as this year.”

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

·       397 dealership transactions were completed for the full year 2023, a 3.7% increase over 2021’s prior record and a 6.1% increase over last year. The increase in buy/sell activity was primarily driven by the first half of the year, when a record 211 transactions were completed.

·       The number of franchises sold rose to 680 in 2023, the second highest level on record.

·       The number of multi-dealership transactions increased in 2023, matching 2021’s record. 32% of transactions completed during the year were multi-dealership transactions, resulting in 126 multiple dealership transactions.

·       The industry saw a significant increase in the percentage of dealers with 11 or more dealerships in 2023 and those with 5 or fewer dealerships continued to decline, reflecting an industry in the early innings of regional consolidation as a precursor to eventual national consolidation of the major metro centers.

·       The domestics represented 54% of the buy/sell market in 2023 taking 4% share from the import luxury market and 1% share from the import non-luxury market.

·      In 2023, public dealer groups acquired 61 franchises for $2.7 billion, the second highest US acquisition spending level on record (albeit 70% below 2021’s record of $9 billion). The only mega transaction completed in 2023 was the acquisition of Koons Automotive by Asbury for $1.5 billion.

·      US public dealer groups ended the year at a blue sky multiple below the 7.3x average of the top franchises, and mostly in line with the 3.75x average of domestic franchises, often leaving them priced out of the buy/sell market for top assets.

·      87% of the acquisitions made by the publics in 2023 were in the South, with just 11% in the West and 1% in the Northeast, consistent with the broader market bias towards business-friendly, higher growth markets.  

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 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 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 260 dealerships generating more than $8 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 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

Transaction expands Group 1’s presence in the Washington-Baltimore metropolitan region; represents Kerrigan Advisors’ 50th franchise sold in the Mid-Atlantic since 2020, making the firm the undisputed leader in dealership sell-side advisory in the region

COLLEGE PARK, MD – February 13, 2024 – Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented College Park, Maryland-based RRR Automotive Group in the sale of its five new car dealerships, including the #1 and #2 volume Honda dealerships in the state of Maryland, to Houston, Texas-based Group 1 Automotive (NYSE: GPI). This transaction underscores Kerrigan Advisors’ industry-leading track record selling the most valuable auto retailers nationwide and marks the 50th franchise sale in the region completed by the firm since 2020. With this transaction, Kerrigan Advisors has represented on the sale of over seven billion dollars on behalf of their dealership clients in just the last nine years, making the firm the leader in auto retail sell-side advisory nationwide.

RRR Automotive Group, founded by Dick Patterson and Robert Hisaoka in the 1990s, is one of the most valuable import groups in the Mid-Atlantic. The group includes Toyota of Bowie, Kia of Bowie, Honda of Owings Mills, Honda of Greenbelt, College Park Hyundai and Toyota Certified at Capital Plaza (one of the nation’s few stand-alone Toyota certified centers).  RRR Automotive Group has served its community for over 27 years through its guiding principles - Reliable, Responsible and Respectful.

“Kerrigan Advisors’ expertise selling the most valuable dealership groups and their impeccable track record of success, particularly in the Mid-Atlantic region, made them the perfect partner for this transaction. We could not have asked for a better advisor to ensure we identified the right buyer for our group and that the transaction ran smoothly from start to finish,” said Dick Patterson, CEO of RRR Automotive Group. “Gabe Robleto and the entire Kerrigan Advisors team were in lock step with us at each stage of the process, and we couldn’t have been more satisfied with the final result.”

“It was a true pleasure working with RRR Automotive Group whose premier import brands and location in one of the nation’s top economies were leading drivers of the strong buyer demand for the group,” said Gabe Robleto, senior vice president, sell-side advisory at Kerrigan Advisors. “We are proud to have shepherded this important transaction to such a successful conclusion and appreciate the trust Dick Patterson and Robert Hisaoka placed in Kerrigan Advisors. I also want to congratulate Group 1 Automotive on adding these exceptional franchises to their network.”

The transaction expands Group 1’s presence in the region and in the non-luxury import brand market. The Washington metropolitan region is an import-dominant market with market share at 72% – 24% higher than the US average, and RRR Automotive Group dominates the markets in which it operates, capturing 48% of Bowie, College Park, Greenbelt and Owings Mills’ import non-luxury sales since 2019. Additionally, the area is one of the nation’s most economically vibrant and fastest growing with a population of 10 million. The region’s GDP has grown at a 4% CAGR since 2001, far outpacing the US, and boasts high median household incomes, high educational attainment rates and superior quality of life rankings.

“This transaction highlights the continued strength of the buy/sell market for top import franchises in economically vibrant markets. Despite an elevated interest rate environment and cooling industry profits, dealerships remain one of the most lucrative retail investments in the country,” said Erin Kerrigan, founder and managing director of Kerrigan Advisors. “Leading consolidators continue to reinvest their tremendous profits into acquisitions, attracted to the high return on investment achievable with auto dealerships, particularly import franchises in growing economies like the Baltimore-Washington metro. We expect this sizable transaction is an indicator of another active buy/sell market in 2024.”

Steven H. Schram of Shapiro, Lifschitz & Schram served as legal counsel to RRR Automotive Group. Brian Nolen of Nolen, PLLC served as legal counsel to Group 1 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 230 dealerships generating more than $7 billion in client proceeds, including the third largest transaction in auto retail history – the sale of Jim Koons Automotive Companies to Asbury Automotive Group. The firm advises the industry’s leading dealership groups, enhancing value through the lifecycle of growing, operating and, when the time is right, selling their businesses. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, Kerrigan Advisors does not take listings, rather they develop a customized sales approach for each client to achieve their personal and financial goals. In addition to the firm’s sell-side advisory services, Kerrigan Advisors also provides a suite of consulting and investor services including 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 Jim Price’s flagship Chevrolet franchise, one of the industry’s strongest domestic brands, is final and third sale for the Virginia-based auto group, all represented by Kerrigan Advisors -- and the 23rd franchise sale in Virginia for Kerrigan Advisors since 2020

Charlottesville, VA – January 9, 2024 – Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented Charlottesville, Virginia-based Jim Price Auto Group in the sale of Jim Price Chevrolet to Malloy Auto Group, which has operated in the Virginia area since 1992. Kerrigan previously represented Jim Price in the sale of its Hyundai and Kia dealerships in 2023. This marks the 23rd franchise sale in Virginia completed by Kerrigan Advisors since 2020.

Jim Price opened Price Chevrolet 56 years ago in 1968 and it has operated with great success from its existing location on Seminole Trail for the past 46 years. In 2017, Price’s daughter, Sandra Price Amato, became the dealer principal for Jim Price Auto, continuing the family’s legacy as one of Charlottesville’s top dealer groups.

“This sale of our Chevrolet dealership, the final of our three auto group franchises to sell, represents the end of an era -- as well as a new beginning for the dealership and for our family. For this very significant moment in our history, we wanted an advisor with a track record of completing high value transactions across the country, and one with particular expertise in the Virginia market. Kerrigan fulfilled that, and more,” said Amato. “They were there for us every step of the way, through all three transactions; and, for the sale of this, our flagship dealership, they found in Malloy a buyer well-suited to the needs of the franchise and the community. We are grateful for the attentive, hands-on, white glove service we received from Gabe Roleto and the entire Kerrigan Advisors team.”

In addition to the dealership’s legacy, its prime market location and real estate were key components in the transaction: Price Chevrolet is located on over 10 acres in a prime retail location on Seminole Trail and Charlottesville is a growing, affluent market with an attractive cost of living, a highly educated workforce, high quality of life, high median household incomes and low cost of living. Notably, in 2023, Virginia ranked as the #2 Top State for Business by CNBC, while Charlottesville was recognized on the Top 100 Best Places to Live in America by Livability.com. 

“It was an honor to work on this transaction with Sandra Price, COO Sandy Fewell, and her entire team. This is the 3rd dealership we have had the pleasure of closing with the group in the last 6 months,” said Gabe Robleto, Senior Vice President, Sell-Side Advisory at Kerrigan Advisors. “Jim Price Auto Group’s 50 years of auto retail success, their reputation for superlative service, the power of the Chevrolet brand and the dealership’s prime real estate made it a very attractive acquisition that generated strong interest from buyers. We were pleased to have been able to help transition the dealership to an auto group with the business values, scope and reputation to continue the Jim Price Chevrolet legacy.”

Chevrolet is the fastest growing volume domestic brand in the US by new unit sales, increasing US light vehicle sales by 13.1% in 2023. In 2023, J.D. Power ranked Chevrolet #4 for vehicle quality, far ahead of its biggest competitor, Ford, and 16% stronger than the US average. 

“This transaction is another example of the appeal to buyers of high value franchises in growing, high quality-of-life and business-friendly markets. It also underscores that the buy/sell market is seeing more and more dealership groups adding scale to their regional platforms through local acquisitions,” said Erin Kerrigan, founder and managing director of Kerrigan Advisors. “We are proud to have closed what has been a record last twelve months of dealership buy/sells for both Kerrigan Advisors and the industry by helping the superlative Jim Price Auto Group sell its final dealership in a market that we know so well.”

Barrett Charapp Beaty of Mahdavi Bacon Halfhill & Young, PLLC served as legal counsel to Jim Price. Cari Lyn Pierce of Williams Mullens served as legal counsel to Malloy 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 225 dealerships representing more than $7 billion in client proceeds, including the third largest transaction in auto retail history – the sale of Jim Koons Automotive Companies to Asbury Automotive Group. The firm advises the industry’s leading dealership groups, enhancing value through the lifecycle of growing, operating and, when the time is right, selling their businesses. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, Kerrigan Advisors does not take listings, rather they develop a customized sales approach for each client to achieve their personal and financial goals. In addition to the firm’s sell-side advisory services, Kerrigan Advisors also provides a suite of consulting and investor services including growth strategy, market valuation assessments, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate due diligence.

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

Transaction highlights desirability of single point luxury, import franchises in middle market locations such as Fresno; Transaction marks Kerrigan Advisors’ 52nd top luxury franchise sold

INCLINE VILLAGE, NV – November 13, 2023 – Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented Fresno, California-based Haron Motor Sales in the sale of Haron Jaguar, Land Rover and Volvo to Temecula, California-based Unstoppable Auto Group, owned by Garth Blumenthal. Unstoppable is now comprised of nine new car dealerships across California. Since the firm’s founding, Kerrigan Advisors has sold over 225 dealerships and 52 top luxury franchises. In 2023 alone, the firm is on track to sell more than 70 franchises representing $2.6 billion in client proceeds, making Kerrigan Advisors the leading sell-side advisor in auto retail.

“It was our pleasure to assist the Haron family in this historic transition of the family business to new ownership. The Harons have been pillars of the downtown Fresno business community for generations,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “With the sale to Unstoppable Auto Group, the dealership remains in the hands of private owners who are deeply invested in the Fresno market.”

Since 1945, three generations of the family have owned and operated the Haron dealership downtown. Founded by Charles Haron, Charles’ nickname of “Haron the Baron, the Sports Car King of the Valley,” quickly became famous in Fresno — as did his affinity for British performance cars. What started as Triumphs and MGs eventually turned into Jaguars in 1981, then evolved to Land Rover and Volvo. A fixture of the Fresno community for 78 years, Haron Motor Sales is known for its excellence in sales and service and boasts high customer service and employee relations.

“The dealership is family. Working at the dealerships is something that we all grew up doing, and how we built our lives,” said Jim Haron, Co-Owner of Haron Motor Sales. “The decision to sell was a difficult one for us. So, when we decided to sell, we wanted to be really careful and very strategic, which is why we selected Kerrigan Advisors who delivered a highly customized sale process to achieve our personal and strategic goals in the transaction.” 

The Haron family’s community reputation was built on their strong advocacy of Fresno, in particular Downtown Fresno. As the former Chairwoman of the Board of Directors for The Downtown Fresno Partnership, Co-Owner Hilary Haron directed the organization that revitalized downtown Fresno.

“After so many decades, and so many generations, we knew we were offering a highly valued dealership with a long legacy,” said Hilary Haron. “We wanted to find a buyer who would do well by our community and the legacy of our dealership. Kerrigan Advisors knew exactly how to identify that buyer, one that was right not only for us, but also for our customers, our employees and for Fresno.”

Hilary Haron was recently honored as an Automotive News 40 Under 40 Honoree, a member of the California New Car Dealers Association’s board of directors (CNCDA) since January 2019, and a Director At-Large West on the National Automobile Dealers Association (NADA) Board.

Said Randy Haron, Co-Owner of Haron Motor Sales: “Our highest priority in this transition was to ensure that the dealership continued to provide the stellar customer service that our name has always stood for. With Unstoppable Auto Group, we found a new owner with a track record of service excellence, and we thank Kerrigan Advisors for helping us achieve this key goal. They were instrumental to the sale process, from preparation, identification of strong buyers, marketing, negotiation, manufacturer approval and ultimately, closing. We could not have done this without them.”

Jaguar, Land Rover and Volvo are favorably positioned in the current market, especially given their attractive SUV lineups: Land Rover as an exclusive SUV/truck brand and Volvo with a growing share of SUV sales. In addition, Fresno has become a strong luxury new car market, with a market share of 25%, significantly higher than California and US. In addition, since 2000, Fresno’s population has grown an impressive 26% and the area now ranks the 7th largest in the state. By 2060, the area’s population is expected to surpass 1.27 million.

“This transaction reflects the high demand for luxury brands in the dealership buy/sell market, especially when represented by a single point in a sizeable, growing market such as Fresno,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “We are proud to have helped the Haron family achieve their goals for this transaction and are happy to have found a buyer who will continue the Haron family’s legacy of excellence in the Fresno community.”

About Kerrigan Advisors

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

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