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

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

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

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

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

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

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

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

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

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

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

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

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

Kerrigan Advisors also releases a monthly index, The Kerrigan Index™, composed of the seven publicly traded auto retail companies with operations focused on the US market.  The Kerrigan Index is designed to track dealership valuation trends, while also providing key insights into factors influencing auto retail. To access The Kerrigan Index™, click here: www.kerriganadvisors.com/the-kerrigan-index/.

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

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

About Kerrigan Advisors

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

About Kerrigan Advisors

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

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

Contacts

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kerrigan Advisors also releases a monthly index, The Kerrigan Index™, composed of the seven publicly traded auto retail companies with operations focused on the US market.  The Kerrigan Index is designed to track dealership valuation trends, while also providing key insights into factors influencing auto retail. To access The Kerrigan Index™, click here: www.kerriganadvisors.com/the-kerrigan-index/.

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

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

About Kerrigan Advisors

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

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

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

Dealership Transaction Values at Record Levels as Sellers Continue to Flock to Market, according to The Blue Sky Report® released by Kerrigan Advisors

Buy/Sell market remains highly active as concerns about disruptive technology drive dealers to sell; over 200 transactions projected to close in 2017 

Irvine, CA –November 28, 2017 – The auto dealership Buy/Sell market is poised for its most active year ever, with over 200 transaction closings projected for 2017, according to The Blue Sky Report® for Q3 2017 released by Kerrigan Advisors.

Factors driving market activity, says The Blue Sky Report, include strong financial markets, well-funded investors, and rising real estate values.  The pressures of a more challenging auto retail market, dropping margins and rising concerns about the impact of disruptive automotive technology on the traditional dealership business model are also having a major impact.  And, while blue sky values are slightly lower than their 2015 peak, and the overall industry is showing some stagnation, 2017 remains on track to be the third most profitable ever, driving more sellers to market and transaction values to record levels when including dealership real estate.

“Historic mega deals with complex ownership structures and multiple franchises are on the rise. These transactions are supported by a financial market that is willing and able to invest hundreds of millions of dollars in auto retail, despite some of the doomsday headlines about slowing sales,” says Erin Kerrigan, Managing Director of Kerrigan Advisors. “Investors and financial institutions see an opportunity to participate in a decades-long auto retail consolidation game – one that they expect will produce winners and losers, particularly as technological innovations potentially change the dealership business model as we know it.”

The Blue Sky Report, published by Kerrigan Advisors, is the auto industry's most comprehensive and authoritative quarterly report and analysis of dealership M&A activity, as well as franchise values. It includes analysis of Q3 2017 - laying out the high, average and low blue sky multiples for each franchise in the luxury and non-luxury segments for the quarter - and offers a detailed view of public and private company dealership acquisition activity.  

Key data and analysis from the Q3 2017 Blue Sky Report includes:

• The Kerrigan Index is up 4.24% year to date and 608% from its 2009 recession lows.
• 149 dealership buy/sell transactions were completed in the first nine months of 2017, according to Kerrigan Advisors’ research and The Banks Report, compared to 172 transactions in the first nine months of 2016. After hitting a plateau in 2015, buy/sell activity declined slightly in the first nine months of 2017, but is still tracking to be one of the most active years on record.
• Multi-dealership transactions represented one quarter of the completed sales in the first nine months of 2017. Kerrigan Advisors expects at least 51 multi-dealership transactions will close this year.
• Year to date, domestics’ share of the buy/sell market increased to 49%, up 18% from 2015.
• Non-luxury and luxury import franchises’ buy/sell market share declined.
• Public retailers’ US acquisition spending increased 61% in the first nine months of 2017 compared to the first nine months of 2016.
• Private dealership groups represent the largest share of dealership acquirers. Of the estimated 236 franchises which changed hands in the first nine months of the year, only 23 were acquired by public companies.
• Real estate, for most dealers, is their most valuable asset, far exceeding franchise value. Kerrigan Advisors estimates dealership real estate prices rose 3% in the first nine months of the year.

The report identifies three key trends shaping 2018’s buy/sell market and the remainder of 2017.

• The evolution of the dealership business model drives more sellers to market
• Dealers are choosing to sell their real estate with their franchise
• Captive finance companies play a critical role in acquisition financing

“Our clients increasingly cite the risk factors associated with changes in auto retail as their single biggest reason for selling, with many believing auto retail will consolidate out of necessity, as only the largest, best-capitalized players will have the balance sheet to navigate auto retail’s evolution,” continued Kerrigan. “This is contributing to a very competitive buy/sell market, particularly for top franchises and attractive platforms and the growing population of well-funded buyers in the market. This creates a healthy market equilibrium – one where buyers and sellers agree on price and complete win/win transactions. Kerrigan Advisors believes this equilibrium will continue for the next several years and result in a highly active buy/sell market.”

Kerrigan Advisors is deeply involved in the Buy/Sell Market having advised on the sale of 60 dealerships, including four of the Top 100 Dealership Groups in the US. Most recently, Kerrigan advised on the sale of Puente Hills Chevrolet, in their recent sale to Pendragon PLC (www.kerriganadvisors.com/kerrigan-advisors-represents-puente-hills-chevrolet-sale-pendragon-plc/) Kerrigan Advisors’ extensive experience representing the largest dealership groups in the country provides the firm with a unique perspective on the trends shaping the industry and today’s franchise values. 

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

Kerrigan Advisors also releases a monthly index, The Kerrigan Index™, composed of the seven publicly traded auto retail companies with operations focused on the US market.  The Kerrigan Index is designed to track dealership valuation trends, while also providing key insights into factors influencing auto retail. To access The Kerrigan Index™, click here: www.kerriganadvisors.com/the-kerrigan-index/.

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

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

About Kerrigan Advisors

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

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

Contacts

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

Family owned and operated since World War II, Puente Hills Chevrolet changes hands with the retirement of co-owners Tom Hoffman and Gary Campbell; Pendragon’s first US acquisition since the early 2000s.

Irvine, CA, October 31, 2017 – Kerrigan Advisors, the leading sell-side advisory firm to auto dealers in the US, represented and advised Tom Hoffman and Gary Campbell, co-owners of Puente Hills Chevrolet, in their recent sale to Pendragon PLC. The dealership has been in the Hoffman family since 1944, originally doing business as Leo Hoffman Chevrolet. Pendragon PLC is a UK-based auto retailer with over 220 dealerships worldwide; the company currently operates five dealerships in the United States under Pendragon North America.

“It’s been an incredible experience to be connected so deeply to the greater San Gabriel Valley community,” said Tom Hoffman. “It’s been 73 years of selling and servicing cars for families, first as Leo Hoffman Chevrolet, and now as Puente Hills Chevrolet,” he said. “It has been a privilege to grow our business and be a part of this wonderful community.”

“Heading into this transaction, it was critical that our sell-side advisors understand our business, its value and opportunities,” said Gary Campbell. “When a family sells a dealership after 70-plus years of ownership, it brings with it a unique set of complexities. Our sell-side advisor had to know how to navigate through these potential challenges. That’s why we chose Kerrigan Advisors. They have deep experience and expertise in terms of representing multi-generational dealerships and dealer families.” 

Kerrigan Advisors, headed by Erin Kerrigan and Ryan Kerrigan, has represented on the sale of 60 dealerships since July 2015, making it the most active sell-side advisor in the US auto retail industry. Ryan Kerrigan noted that the sale of Puente Hills Chevrolet was of particular note because the dealership is being acquired by an international buyer.  This buy/sell trend, which was featured in Kerrigan Advisors 2016 Third Quarter Blue Sky Report®, is expected to continue for the remainder of 2017 and into 2018.

“We were privileged to work with Tom and Gary in creating the right transaction for their families. We are confident that this is a very positive outcome for the employees and customers of Puente Hills Chevrolet.” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “We are also happy to see Pendragon grow its footprint in Southern California and expect more international buyers to enter the US auto retail market in the future.”

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

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

About Kerrigan Advisors

Kerrigan Advisors is the leading dealership buy/sell advisory firm focused on providing a high level of client service for dealership sellers nationwide. Led by a team of veteran advisors, Kerrigan Advisors customizes each sale process to maximize the seller’s transaction proceeds. The firm has sold 60 dealerships since 2015.  With the most comprehensive buyer database in the industry, Kerrigan Advisors has the industry context and expertise to match every seller with the right buyer.

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

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