Lithia Motors acquires dealerships in third largest Florida metro; Sale marks the 114th Kerrigan-led dealership sale since 2015, and 6th Florida sale in 13 months.

INCLINE VILLAGE, NV – February 9, 2021– Kerrigan Advisors, a leading sell-side advisory firm to auto dealers in the U.S., represented and advised Fields Auto Group, one of the largest dealership groups in the US, on its sale of Land Rover Orlando and Chrysler Dodge Jeep Ram Sanford to Lithia Motors. This transaction marks the 114th dealership that Kerrigan Advisors has advised on the sale of since its founding in 2015, making the firm the most active sell-side advisor to the highest value transactions in auto retail. It is also Kerrigan Advisors’ seventh multi-dealership transaction since Q1 2020, and sixth Florida dealership sale since December of 2019.

“We were honored to represent Fields Auto Group in the sale of these valuable Florida stores,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “Orlando is one of the top growth markets in the country, and dealerships there are highly coveted by buyers – especially luxury brands like Land Rover and popular nameplates, such as Jeep and Ram.   Kerrigan Advisors’ transaction experience and knowledge of the Florida market was key to making this sale seamless and beneficial for all involved.”

Florida dealerships are among the highest volume and most profitable in the nation, with average revenue per dealership 51.1% higher than the national average. Compared to the three other largest states (Texas, New York and California) by total dealership revenue, Florida boasts the highest revenue per capita. As the third largest metro area in Florida, Orlando, an emerging technology hub, is a key part of Florida’s success, and has population growth that’s over 50% higher than the rest of the Sunshine state, all of which has helped drive Land Rover Orlando to be the 33rd highest volume Land Rover dealership in the US (based on 2019 new unit sales).

“To successfully sell two highly profitable dealerships in Orlando, we hired Kerrigan Advisors because we knew they would not only find the right buyer, they would also actively manage the sale process and ensure a smooth closing,” said John Fields, Owner of Fields Auto Group. “No other sell-side advisor understands the fluctuations of the auto retail market the way Kerrigan Advisors does – and few if any understand the value of dealerships and blue sky as well as they do.”     

Fields Auto Group began as a single Cadillac dealership in Evanston, Ill., in 1971. Today, the company operates 32 franchises at 20 locations in Illinois, Wisconsin, North Carolina, and Florida. Since its founding, the company has made philanthropy a central part of its mission, starting with The Earl and Betty Fields Foundation, the March of Dimes, and Make a Wish Foundation. In Orlando, Fields Auto Group is involved in New Hope for Kids, a pediatric cancer organization. Most recently, Fields Auto Group has reached out to those impacted by the pandemic through organizations such as Second Harvest.

“This transaction reaffirmed Kerrigan Advisors’ commitment to client service and their dedication to ensuring all our goals for the transaction were accomplished,” said Shermin Pelinski, General Counsel of Fields Auto Group. “When we decided to sell Land Rover Orlando and CDJR Sanford, it was imperative that we do so with an advisor who not only understood the Orlando market, but also how important this transaction was to us – and to our community. Kerrigan Advisors provided insightful counsel and worked tirelessly to make the transaction seamless and successful.”

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

Kerrigan Advisors monitors conditions in the buy/sell market and publishes an in-depth analysis each quarter in The Blue Sky Report®, which includes Kerrigan Advisors’ signature blue sky charts, multiples, and analysis for each franchise in the luxury and non-luxury segments. To download a preview of the report, click here. The firm also releases monthly The Kerrigan Index™ composed of the seven publicly traded auto retail companies with operations focused on the US market.  The Kerrigan Auto Retail Index is designed to track dealership valuation trends, while also providing key insights into factors influencing auto retail. To access The Kerrigan Index™, click here. To read the 2020 Kerrigan Dealer Survey, click here: https://www.kerriganadvisors.com/the-kerrigan-dealer-survey/.

About Kerrigan Advisors

Kerrigan Advisors is a leading sell-side advisor and thought partner to auto dealers in the US.  The firm advises the industry’s leading dealership groups, enhancing value through the lifecycle of growing, operating and, when the time is right, selling their businesses.  Kerrigan Advisors has represented on some of auto retail’s largest transactions, including seven of the Top 150 Dealership Groups in the US, more than any other firm in the industry. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, the firm does not take listings, rather they develop a customized approach for each client to achieve their personal and financial goals. In addition to Kerrigan Advisors’ sell-side advisory and capital raising services, the firm also provides a suite of consulting services including growth strategy, market valuation assessments, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate due diligence.

Kerrigan Advisors publishes The Blue Sky Report®, which is the auto industry's most comprehensive and authoritative quarterly report of dealership buy/sell activity and franchise values, received by over 9,000 industry participants in 35 countries.  To register to receive The Blue Sky Report®, click here: https://www.kerriganadvisors.com/the-blue-sky-report.  Kerrigan Advisors also publishes The Kerrigan Index™, the only monthly index tracking the seven publicly traded auto retail companies. To access The Kerrigan Index™, click here: http://www.kerriganadvisors.com/the-kerrigan-index/. To read the 2020 Kerrigan Dealer Survey, click here: https://www.kerriganadvisors.com/the-kerrigan-dealer-survey/.

Kerrigan Advisors’ Founder and Managing Director, Erin Kerrigan, is a recognized expert on dealership valuation, real estate, and buy/sells, and is a frequent speaker at leading auto retail events and conferences, including NADA, JD Power Automotive Roundtable, Automotive News’ Canadian World Congress, AICPA, and NADC. She has also been quoted numerous times by The Wall Street Journal, CNBC, Bloomberg and The Economist and has been a keynote speaker for events hosted by American Honda Motor Company, Audi of America, US Trust, Bank of America, Ohio Automobile Dealer Association, and SunTrust Bank. Erin Kerrigan was named by Auto Remarketing as one of the leading women in Automotive in 2020.  Kerrigan Advisors’ Managing Director Ryan Kerrigan is also a sought-after industry expert. He is featured in a monthly column for Dealer Magazine and has written Op-Eds for Automotive News.

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

After a volatile start to 2020, The Kerrigan Index out-performed the S&P and rose to all-time highs; all seven component companies hit record market capitalizations in 2020  

INCLINE VILLAGE, NV – January 13, 2021 – Kerrigan Advisors, a leading sell-side advisory firm and thought leader to auto dealers in the U.S., has released The Kerrigan Index™ for December 2020/Year in Review. Comprised of the seven publicly-traded auto retailers, the report demonstrates how a resilient auto retail industry weathered the uncertainty of COVID-19 and emerged stronger than ever with record-breaking stock valuations, profitability and sales increases. In December, The Kerrigan Index™ increased 5.22%, outpacing the S&P’s increase of 3.71% for the month. For the year, The Kerrigan Index™ increased almost 30%, handily outperforming the broader US stock market and hitting all-time highs in 2020.

“What’s really notable is that the auto retail stocks, and The Kerrigan Index™, have traded at all-time highs throughout the final months of 2020. In spite of a historically crisis-driven and volatile year, the stocks are valued higher than ever before,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “Clearly, Wall Street is bullish on auto retail, and comfortable that it will continue to evolve on pace with technology and consumer behavior.”

December 2020: Retail Valuations Stay Resilient As Sales Trend Back to 2019 Levels

US auto sales were down approximately 5% year over year in December, with the monthly SAAR estimated at 16.4 million – compared to 17.1 million in December 2019. That continues a steady climb back to prior year levels after dropping to a low of 8.74 million in April, as dealers faced closures and struggled to source inventory. In December, six of the seven Kerrigan Index stocks posted increases in December, led by Asbury Automotive Group (+29.23%) and AutoNation (+13.87%).

“For all the talk of auto industry disruption – and with some of the disruptors being valued at crazy multiples –  confidence in the traditional automotive retail model was profoundly reinforced in December,” said Ryan Kerrigan.

2020 Year in Review: Unanticipated Volatility, Outstanding Performance

The year 2020 was comprised of three distinct segments: a strong start to the year, a challenging downturn, and a subsequent rebound that brought the industry back to record-setting performance. After the wild ride, The Kerrigan Index™ increased 29.65%, significantly outperforming the S&P 500 Index which increased only 16.26%, and all seven component stocks posted increases for the year, led by Lithia Motors (+127.18%), and AutoNation (+41.34%).

“This was the ultimate comeback year, and auto dealerships were its comeback kids,” said Erin Kerrigan, Founder & Managing Director of Kerrigan Advisors. “In a year of raging unpredictability– from smooth sailing to collapsing financial markets, closed doors to critical inventory supply shortages – auto retail stayed resilient, and continued to prosper.”

From a low point on March 18th, when The Kerrigan Index dropped 51.8% from the start of the year, values began to rebound in the second quarter of 2020 and started to trade in all-time record territory in the third quarter. As reported in the Third Quarter 2020 Blue Sky Report® by Kerrigan Advisors, there was a 94% year-over-year rise in dealership earnings in the third quarter, driven by higher vehicle gross profit margins, increased operational efficiency, and price increases due to limited inventory.

“The rise in earnings helped to create an active buy/sell environment, with 186 transactions in the first nine months of 2020,” said Erin Kerrigan. “COVID-19 or not, that’s a 15.5% increase over the first nine months of 2019[1]. Throughout the year, the market has rewarded retail competence, confidence, and proven retail processes. Despite being one of the toughest years in auto retail history, 2020 ultimately ended as the most profitable year on record for dealers.”

The Kerrigan Index™ Highlights

The December 2020/Year in Review Kerrigan Index provides a succinct overview of the auto retail industry as it moves beyond the volatility of this past year, and trends back to prior norms. The Kerrigan Index examines valuation trends of the seven public auto retailers, including CarMax, AutoNation, Penske Automotive Group, Lithia Motors, Group 1 Automotive, Asbury Automotive Group and Sonic Automotive, as well as reviews monthly performance data and retail sales trends.  

Notable points include:

- Each of the component stocks hit their all-time records in 2020: CarMax on 8/24/2020; Lithia Motors on 11/24/2020; AutoNation on 12/31/2020; Penske Automotive Group on 11/16/2020; Asbury Automotive Group on 12/17/2020; Group 1 Automotive on 10/21/2020; and Sonic Automotive on 8/12/2020.

• - The average new vehicle retail transaction price in December was a record $38,077, driven by demand for SUVs and trucks. (JD Power)
• - Consumer spending on new vehicles is expected to be $53.3 billion in December, up $10 billion from December 2019 – an all-time industry high. (JD Power)
• - Fleet sales are estimated to have declined 31% from December 2019 and are expected to represent 14% of total light vehicle sales, down from 19% a year ago.  (JD Power)
•  
• - Trucks and SUVs accounted for 79.1% of December’s new vehicle retail sales. (JD Power)
• - Average incentive spending per unit in December is expected to fall 12.7% to $4,014.  (JD Power)
• - December incentive spending as a percentage of the average MSRP was 9.2%, down two percentage points from a year ago.   (JD Power)
• - CarMax announced third quarter earnings were up 36% year-over-year on revenue which was up 8.2%.

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.

About Kerrigan Advisors

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

Kerrigan Advisors publishes The Blue Sky Report®, which is the auto industry's most comprehensive and authoritative quarterly report of dealership buy/sell activity and franchise values, received by over 9,000 industry recipients in 35 countries.  To register to receive The Blue Sky Report®, click here: https://www.kerriganadvisors.com/the-blue-sky-report.  Kerrigan Advisors also publishes The Kerrigan Index™, the only monthly report tracking the seven publicly traded auto retail companies. To access The Kerrigan Index™, click here: http://www.kerriganadvisors.com/the-kerrigan-index/.

Kerrigan Advisors’ Founder & Managing Director, Erin Kerrigan, is a recognized expert on dealership valuation, real estate, and buy/sells, and is a frequent speaker at leading auto retail events and conferences, including NADA, JD Power Automotive Roundtable, Automotive News’ conferences, AICPA, and NADC. She has also been quoted numerous times by The Wall Street Journal, CNBC, Bloomberg and The Economist and has been a keynote speaker for events hosted by American Honda Motor Company, Audi of America, US Trust, Bank of America, Ohio Automobile Dealer Association, and SunTrust Bank. Kerrigan Advisors’ Managing Director Ryan Kerrigan is also a sought-after industry expert. He is featured in a monthly column for Dealer Magazine and has written Op-Eds for Automotive News.
 

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

After a volatile start to 2020, The Kerrigan Index out-performed the S&P and rose to all-time highs;  all seven component companies hit record market capitalizations in 2020  

INCLINE VILLAGE, NV – January 13, 2021 – Kerrigan Advisors, a leading sell-side advisory firm and thought leader to auto dealers in the U.S., has released The Kerrigan Index™ for December 2020/Year in Review. Comprised of the seven publicly-traded auto retailers, the report demonstrates how a resilient auto retail industry weathered the uncertainty of COVID-19 and emerged stronger than ever with record-breaking stock valuations, profitability and sales increases. In December, The Kerrigan Index™ increased 5.22%, outpacing the S&P’s increase of 3.71% for the month. For the year, The Kerrigan Index™ increased almost 30%, handily outperforming the broader US stock market and hitting all-time highs in 2020.

“What’s really notable is that the auto retail stocks, and The Kerrigan Index™, have traded at all-time highs throughout the final months of 2020. In spite of a historically crisis-driven and volatile year, the stocks are valued higher than ever before,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “Clearly, Wall Street is bullish on auto retail, and comfortable that it will continue to evolve on pace with technology and consumer behavior.”

December 2020: Retail Valuations Stay Resilient As Sales Trend Back to 2019 Levels

US auto sales were down approximately 5% year over year in December, with the monthly SAAR estimated at 16.4 million – compared to 17.1 million in December 2019. That continues a steady climb back to prior year levels after dropping to a low of 8.74 million in April, as dealers faced closures and struggled to source inventory. In December, six of the seven Kerrigan Index stocks posted increases in December, led by Asbury Automotive Group (+29.23%) and AutoNation (+13.87%).

“For all the talk of auto industry disruption – and with some of the disruptors being valued at crazy multiples –  confidence in the traditional automotive retail model was profoundly reinforced in December,” said Ryan Kerrigan.

2020 Year in Review: Unanticipated Volatility, Outstanding Performance

The year 2020 was comprised of three distinct segments: a strong start to the year, a challenging downturn, and a subsequent rebound that brought the industry back to record-setting performance. After the wild ride, The Kerrigan Index™ increased 29.65%, significantly outperforming the S&P 500 Index which increased only 16.26%, and all seven component stocks posted increases for the year, led by Lithia Motors (+127.18%), and AutoNation (+41.34%).

“This was the ultimate comeback year, and auto dealerships were its comeback kids,” said Erin Kerrigan, Founder & Managing Director of Kerrigan Advisors. “In a year of raging unpredictability– from smooth sailing to collapsing financial markets, closed doors to critical inventory supply shortages – auto retail stayed resilient, and continued to prosper.”

From a low point on March 18th, when The Kerrigan Index dropped 51.8% from the start of the year, values began to rebound in the second quarter of 2020 and started to trade in all-time record territory in the third quarter. As reported in the Third Quarter 2020 Blue Sky Report® by Kerrigan Advisors, there was a 94% year-over-year rise in dealership earnings in the third quarter, driven by higher vehicle gross profit margins, increased operational efficiency, and price increases due to limited inventory.

“The rise in earnings helped to create an active buy/sell environment, with 186 transactions in the first nine months of 2020,” said Erin Kerrigan. “COVID-19 or not, that’s a 15.5% increase over the first nine months of 2019[1]. Throughout the year, the market has rewarded retail competence, confidence, and proven retail processes. Despite being one of the toughest years in auto retail history, 2020 ultimately ended as the most profitable year on record for dealers.”

The Kerrigan Index™ Highlights

The December 2020/Year in Review Kerrigan Index provides a succinct overview of the auto retail industry as it moves beyond the volatility of this past year, and trends back to prior norms. The Kerrigan Index examines valuation trends of the seven public auto retailers, including CarMax, AutoNation, Penske Automotive Group, Lithia Motors, Group 1 Automotive, Asbury Automotive Group and Sonic Automotive, as well as reviews monthly performance data and retail sales trends. 

Notable points include:

- Each of the component stocks hit their all-time records in 2020: CarMax on 8/24/2020; Lithia Motors on 11/24/2020; AutoNation on 12/31/2020; Penske Automotive Group on 11/16/2020; Asbury Automotive Group on 12/17/2020; Group 1 Automotive on 10/21/2020; and Sonic Automotive on 8/12/2020.

• - The average new vehicle retail transaction price in December was a record $38,077, driven by demand for SUVs and trucks. (JD Power)
• - Consumer spending on new vehicles is expected to be $53.3 billion in December, up $10 billion from December 2019 – an all-time industry high. (JD Power)
• - Fleet sales are estimated to have declined 31% from December 2019 and are expected to represent 14% of total light vehicle sales, down from 19% a year ago.  (JD Power)
• - Trucks and SUVs accounted for 79.1% of December’s new vehicle retail sales. (JD Power)
• - Average incentive spending per unit in December is expected to fall 12.7% to $4,014.  (JD Power)
• - December incentive spending as a percentage of the average MSRP was 9.2%, down two percentage points from a year ago.   (JD Power)
• - CarMax announced third quarter earnings were up 36% year-over-year on revenue which was up 8.2%.

2020 is on track to surpass 2015’s record transaction levels; mega dealer transactions on the rise, dealership earnings spike blue sky values, Toyota is most valuable non-luxury franchise, according to Third Quarter 2020 Blue Sky Report® by Kerrigan Advisors

Irvine, CA – December 14, 2020 – After rebounding dramatically in the second quarter of 2020, the auto dealership buy/sell market continued to soar in Q3, putting it on track to surpass 2015’s record transaction numbers, according to the just-released Third Quarter 2020 Blue Sky Report® by Kerrigan Advisors. With a flurry of mega dealer transactions, and high dealership earnings, blue sky values shot to unprecedented levels during the quarter.

“As we predicted, there was no softening of this record-breaking market,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors.  “A 94% year-over-year rise in dealership earnings in Q3 was driven by higher vehicle gross profit margins, reduced operating expenses, limited inventory (which drove up prices), and increased operational efficiency. This created a perfect storm for a white-hot buy/sell environment, one that we predict will surpasses the historic levels of 2015.”

Seventy-three dealership buy/sell transactions were completed in the third quarter of 2020, for a total of 186 transactions for the first nine months of the year, a 15.5% increase over the first nine months of 2019.[1] Despite periods of retail disruption due to COVID-19, 2020 thus far has achieved the highest level of transaction activity since 2015.

 “Of particular note were the high numbers of multi-dealership transactions completed in Q3, including mega dealer transactions, representing 25% of the buy sell market for the first nine months of the year. We expect this trend to continue into 2021,” continued Kerrigan.

Through the third quarter of 2020, four of the Top 100 Dealership Groups (4%) have sold either their entire group or the majority of their dealerships, including Kerrigan Advisors’ client Keyes Automotive Group (#20 on Automotive News’ Top 150 List). In fact, the scope of dealership sales managed by Kerrigan Advisors in Q3 is confirmation of the power of this market, with the company advising on the sale of 22 dealerships in the fourth quarter.

According to the Blue Sky Report, public and private dealership valuations exceeded prior highs. The Kerrigan Index™, comprised of the seven publicly traded dealership groups, hit record levels in the third quarter, with the publics’ average blue sky multiple at the end of the third quarter at 7.6 times, making most private dealership acquisitions highly accretive to earnings.

“The resilience of auto sales in the face of the pandemic continues to drive high valuations,” said Ryan Kerrigan, managing director of Kerrigan Advisors. “Unlike other retail industries which have yet to rebound, auto retail barely missed a beat after the economic disruption in March and April. In fact, the industry’s growth rate accelerated in June, while its costs declined, resulting in incredible earnings growth. As a result, buyer demand for dealerships is on the rise and dealers are bullish on their valuations.”

This is reflected in Kerrigan Advisors’ second annual Dealer Survey which found a rising number of dealers expecting the value of their business to increase over the next 12 months, with nearly half expecting a rise in buy/sell activity as a result of COVID-19.

The Blue Sky Report, however, emphasizes that, with 2020 earnings being the most volatile on record, buyers are pricing blue sky based on adjusted 2020 earnings, removing profit improvements deemed unlikely to continue in the future and adding back the one-time losses associated with 2020’s period of economic shutdown.

In the report’s analysis of specific brand valuations, Toyota continues to stand out as the most valuable non-luxury franchise.  Toyota dealers are more optimistic on valuation than any other franchise dealer body and it commands the highest blue sky multiple amongst non-luxury franchises. Another franchise showing positive trends is Ford: Kerrigan Advisors upgraded its multiple outlook from ‘negative’ to ‘steady.’  “Ford’s third quarter profits were impressive,” said Ryan Kerrigan.  “Our dealer survey revealed a significant uptick in Ford dealers’ expectations for valuation improvement. One cannot underestimate the recent impact of Jim Farley’s leadership on buyers’ confidence in Ford’s future.”   

On a less positive note, the one adjustment made to Kerrigan Advisors’ Blue Sky Multiples was the downgrading of Infiniti’s multiple ranges - from 3.5 on the high end to 3.0 and from 2.5 on the low end to 2.0 – as a result of the franchise’s continued weakness in buyer demand.

“Overall, today’s dealership buyers believe auto retail sales will outpace the country’s economic growth. 2020 marks a stunning reversal of trends that were thought to dampen demand for cars in the long term, including a steep decline in urbanization, ridesharing and public transit, all of which are contributing to sales growth projections for 2021,” concluded Erin Kerrigan.

Highlights from the Third Quarter 2020 Blue Sky Report® by Kerrigan Advisors include:

- Buy/sell transactions increased 15.5% over the first nine months of 2019

- Seventy-three dealership buy/sell transactions were completed in Q3 2020, for a total of 186 transactions for the first nine months of the year

- There were 46 multi-dealership transactions representing 25% of the buy/sell market

- The publics’ average blue sky multiple at the end of the third quarter was 7.6 times, a 171.4% increase from Q1 2020, as they completed a record level of acquisition spending in the third quarter. Year to date, Lithia and Asbury have spent $1.56 billion on US acquisitions

- Private dealerships’ average blue sky value is $6.9 million, above 2015’s prior high

- Private dealership groups represented 90% of the buyers of dealerships through the third quarter

- Import luxury franchises increased their buy/sell market share in the third quarter -- at the expense of import non-luxury and domestic franchises

- Domestic franchises dominate the buy/sell market with 54% market share

- To date, four of the Top 100 Dealership Groups (4%) have sold either their entire group or the majority of their dealerships

- 33% of dealers surveyed in 2020 expect the value of their dealership to increase in the next 12 months, as compared to 26% surveyed in 2019

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 9,000 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: https://www.kerriganadvisors.com/the-blue-sky-report-third-quarter-2020-preview/.  To sign up to receive the quarterly report, click here:
https://www.kerriganadvisors.com/the-blue-sky-report/.

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: http://www.kerriganadvisors.com/the-kerrigan-index/.

About Kerrigan Advisors

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

Kerrigan Advisors publishes The Blue Sky Report®, which is the auto industry's most comprehensive and authoritative quarterly report of dealership buy/sell activity and franchise values, received by over 9,000 industry participants in 35 countries.  To register to receive The Blue Sky Report®, click here: https://www.kerriganadvisors.com/the-blue-sky-report.  Kerrigan Advisors also publishes The Kerrigan Index™, the only monthly report tracking the seven publicly traded auto retail companies. To access The Kerrigan Index™, click here: http://www.kerriganadvisors.com/the-kerrigan-index/.

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

Newly-released Kerrigan Dealer Survey shows that 33% expect an increase in their dealership valuation; 47% anticipate increase in buy/sell activity; Subaru and Toyota top valuation expectations

Incline Village, Nevada, November 23, 2020 – Automobile dealers are more optimistic about the valuation of their dealerships this year than last year, according to the newly-released, second annual Kerrigan Dealer Survey.  The survey was fielded by Kerrigan Advisors, a leading sell-side advisory firm to auto dealers in the U.S.

The 2020 survey, which queried 680 dealers, found that 33% expect an increase in the value of their dealership – a 27% boost compared to 2019 findings, when only 26% of dealers expected their dealership value to go up. All told, more than 80% of dealers expect the valuation of their dealership to remain the same or increase. Just 14% expect a decrease in valuation.

“Despite the uncertainty and disruption caused by the COVID-19 pandemic, this survey finds  dealers to be optimistic heading into the future,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors.  “We aren’t surprised. Our Q2 2020 Blue Sky Report® showed blue sky values rising in the first half of the year, despite earnings volatility due to the economic shutdown.  These bullish dealer valuation expectations are being driven by the rebound in auto sales, record industry earnings, the ongoing strength of the auto retail business model, and expectations for sales and profit growth into 2021.”

The survey also provided a glimpse into dealer attitudes about how COVID-19 is impacting their acquisition plans: 64%, a clear majority, do not anticipate adjusting their acquisition plans, while 17% expect to be more acquisitive; 19% plan to be less so. Interestingly, close to a majority (47%) of dealers surveyed also believe buy/sell activity will increase in the next 12 months. 

“We attribute these contrasting responses – more expect the buy/sell market to increase than expect to be acquisitive – to a rise in dealers who are considering a sale,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “Overall, the results of the survey are consistent with Kerrigan Advisors’ expectations that a growing pool of dealerships will be for sale over the next 12 months.  Dealer optimism on future valuations is a reflection of that.”

Franchise Valuation Expectations: Subaru and Toyota Highest, Jaguar Land Rover Comes Back

Dealers also shared their opinions about the direction of specific franchise values over the next 12 months, pointing out potential winners, as well as franchises they felt would remain consistently valued – or suffer a decline. For the second consecutive year, Subaru and Toyota enjoyed the highest percentage of dealers anticipating an increase in value at 38% and 37%, respectively.

“These results highlight Toyota’s tremendous franchise value,” said Erin Kerrigan. “Year-over-year dealer expectations of Toyota’s improved value grew 7.4 percentage points, more than any other franchise, which is impressive given that Toyota is the highest valued franchise in the non-luxury market.”

Also logging valuation expectation gains were Porsche (28%), Honda (27%), Mercedes-Benz (26%) and Lexus (26%). Stability was also on the mind of dealers, with over 60% expecting values for BMW (63%), Audi (62%), Honda (61%), Jaguar Land Rover (60%), and Mercedes-Benz (60%) to remain the same over the next 12 months. The majority of dealers selected Nissan (69%) and Infiniti (65%) as the two brands most likely to decline in value.

Another note of optimism was in a turnaround of last year’s negative expectations of Jaguar Land Rover. The 2020 Kerrigan Dealer Survey found that 73% of dealers expect the franchise will either increase or remain the same in value. That’s a notable shift from last year: from 40% anticipating a decline in 2019 to just 27% this year.

“Jaguar Land Rover’s rebound reflects the strength of the luxury SUV market in 2020, and the benefit of low interest rates,” said Erin Kerrigan. “The value of domestic franchises like Buick GMC, Chevrolet, and Ford have also benefitted from low interest rates and the corresponding consumer shift to trucks – not to mention low gas prices and economic stimulus.”

The top five franchises expected to increase/remain the same/decrease in value over the next 12 months are as follows:

The Kerrigan Survey found an overall improvement in valuation and buy/sell activity expectations by surveyed dealers, which is consistent with Kerrigan Advisors’ market observations. Kerrigan Advisors also saw a high correlation between the 2020 results and franchise demand in its proprietary Buyer Database. Franchises most expected to increase in value have the strongest buyer demand, while franchises most expected to decline in value have the lowest buyer demand.

Survey Methodology

Data for the annual Kerrigan Dealer Survey was gathered through a survey of auto dealers in conjunction with the issuance of The Blue Sky Report®. The Kerrigan Dealer Survey is based on 680 responses from franchised auto dealers in Kerrigan Advisors’ proprietary database. Survey responses were collected from June 2020 to October 2020.

To download the full Kerrigan Dealer Survey report, click here: https://www.kerriganadvisors.com/the-kerrigan-dealer-survey/

About Kerrigan Advisors

Kerrigan Advisors is a leading sell-side advisor and thought partner to auto dealers in the US.  The firm advises the industry’s leading dealership groups, enhancing value through the lifecycle of growing, operating and, when the time is right, selling their businesses.  Kerrigan Advisors has represented on some of auto retail’s largest transactions, including seven of the Top 150 Dealership Groups in the US, more than any other firm in the industry. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, the firm does not take listings, rather they develop a customized approach for each client to achieve their personal and financial goals. In addition to Kerrigan Advisors’ sell-side advisory and capital raising services, the firm also provides a suite of consulting services including growth strategy, market valuation assessments, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate due diligence.

Kerrigan Advisors publishes The Blue Sky Report®, which is the auto industry's most comprehensive and authoritative quarterly report of dealership buy/sell activity and franchise values, received by over 9,000 industry participants in 35 countries.  To register to receive The Blue Sky Report®, click here.  Kerrigan Advisors also publishes The Kerrigan Index™, the only monthly report tracking the seven publicly traded auto retail companies. To access The Kerrigan Index™, click here.

Kerrigan Advisors’ Founder and Managing Director, Erin Kerrigan, is a recognized expert on dealership valuation, real estate, and buy/sells, and is a frequent speaker at leading auto retail events and conferences, including NADA, JD Power Automotive Roundtable, Automotive News’ Canadian World Congress, AICPA, and NADC. She has also been quoted numerous times by The Wall Street Journal, CNBC, Bloomberg and The Economist and has been a keynote speaker for events hosted by American Honda Motor Company, Audi of America, US Trust, Bank of America, Ohio Automobile Dealer Association, and SunTrust Bank. Kerrigan Advisors’ Managing Director Ryan Kerrigan is also a sought-after industry expert. He is featured in a monthly column for Dealer Magazine and has written Op-Eds for Automotive News.

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

Sale of Mercedes-Benz, Sprinter, Porsche, Jaguar, Land Rover, Volvo and Acura dealerships  highlights strong buyer demand in the mountain states; marks 111th Kerrigan-led dealership sale since 2015

Irvine, CA, November 19, 2020 – Kerrigan Advisors, a leading sell-side advisory firm to auto dealers in the U.S., represented and advised Lyle Pearson Auto Group of Boise, Idaho on its recent sale of five luxury dealerships to Spokane, Washington-based Gee Automotive. Franchises include Mercedes-Benz, Sprinter, Porsche, Jaguar, Land Rover, Volvo and Acura. The transaction is the 6th multi-dealership Kerrigan-led transaction in 2020 and 111th dealership sale since 2015. The firm is the most active sell-side advisor to the largest dealership groups in the U.S.

“We were proud to represent Lyle Pearson Auto Group, a constellation of retail brands that have defined luxury in Boise for decades,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “It was no surprise that demand for these well-established dealerships, with long and successful track records in their communities, was high. Booming population growth, and a market area that isn’t over-dealered, accelerated this interest. Our role was to help navigate that interest, and pinpoint a buyer whose values and vision for the dealerships, and their future, meshed with those of our client.”

“Since day one, Lyle Pearson Auto Group has been about how vehicle buyers and owners are treated when they visit a dealership, and prioritizing a modern, knowledgeable, sales and service experience,” said Jim Cross, President and Owner of the Lyle Pearson Auto Group. “The legacy begun by my father-in-law has continued to thrive because we’ve ensured that our dealerships are premium in every possible way.  Those values are reflected in our employee’s commitment to our success and to offering a premier luxury experience to Boise car buyers,”  

Lyle Pearson first began selling cars in Treasure Valley over 50 years ago, when he was awarded Mercedes-Benz and Volvo franchises. In 1988, Pearson added a Land Rover dealership, with Acura and Porsche joining in the ensuing years. Pearson, who was named 2011 Time Dealer of the Year for Idaho, passed in 2012. His successor and son-in-law, Jim Cross, continued to build the auto group by adding Sprinter, completing several grand re-openings and the construction of new Jaguar Land Rover and Volvo stores. In addition, in 2018 Mercedes-Benz of Boise was awarded the Best of the Best Silver Laurel distinction.

“We are so pleased to pass the business on to another family-owned, service-oriented, growing dealership group,” continued Cross.  “We selected Kerrigan Advisors to represent us in this sale because they are the best in the business.  Ryan and his team ran a seamless process from start to finish, making sure we were well-prepared for the sale process. They were able to bring the transaction together perfectly.”

According to Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors, the Lyle Pearson Auto Group transaction symbolizes the strength of the automotive space, and specifically, the buy/sell market. “What we’re seeing, in terms of the broader M&A dealership market, is the strength of the post-COVID comeback,” said Erin Kerrigan. “This is driven by a bounce back in dealership earnings, low interest rates and increased buyer and investor demand.  This has resulted in very strong buyer demand for top growth markets such as Boise, an example of a single point luxury market that is commanding higher value.”

Stephen Dietrich of Holland & Knight served as legal counsel to the seller. Toby Hazen of Eide Bailly LLP served as the seller’s accountant. 

Kerrigan Advisors is the most active sell-side advisor on larger transactions in the auto retail industry with the most sale proceeds per transaction of any firm.  In addition to its sell-side advisory work, the firm offers strategic consulting services to dealers and their families, including growth planning, capital raising and valuation analysis, creating value at every stage of the auto retail lifecycle.

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

About Kerrigan Advisors

Kerrigan Advisors is a leading sell-side advisor and thought partner to auto dealers in the US.  The firm advises the industry’s leading dealership groups, enhancing value through the lifecycle of growing, operating and, when the time is right, selling their businesses.  Kerrigan Advisors has represented on some of auto retail’s largest transactions, including seven of the Top 150 Dealership Groups in the US, more than any other firm in the industry. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, the firm does not take listings, rather they develop a customized approach for each client to achieve their personal and financial goals. In addition to Kerrigan Advisors’ sell-side advisory and capital raising services, the firm also provides a suite of consulting services including growth strategy, market valuation assessments, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate due diligence.

Kerrigan Advisors publishes The Blue Sky Report®, which is the auto industry's most comprehensive and authoritative quarterly report of dealership buy/sell activity and franchise values, received by over 9,000 industry participants in 35 countries.  To register to receive The Blue Sky Report®, click here: https://www.kerriganadvisors.com/the-blue-sky-report.  Kerrigan Advisors also publishes The Kerrigan Index™, the only monthly report tracking the seven publicly traded auto retail companies. To access The Kerrigan Index™, click here: http://www.kerriganadvisors.com/the-kerrigan-index/.

Kerrigan Advisors’ Founder and Managing Director, Erin Kerrigan, is a recognized expert on dealership valuation, real estate, and buy/sells, and is a frequent speaker at leading auto retail events and conferences, including NADA, JD Power Automotive Roundtable, Automotive News’ Canadian World Congress, AICPA, and NADC. She has also been quoted numerous times by The Wall Street Journal, CNBC, Bloomberg and The Economist and has been a keynote speaker for events hosted by American Honda Motor Company, Audi of America, US Trust, Bank of America, Ohio Automobile Dealer Association, and SunTrust Bank. Kerrigan Advisors’ Managing Director Ryan Kerrigan is also a sought-after industry expert. He is featured in a monthly column for Dealer Magazine and has written Op-Eds for Automotive News.

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

Lithia Motors acquires Sterling Motorcars luxury brand dealerships, including BMW, MINI, Rolls-Royce Motor Cars, Lamborghini and McLaren in the Washington DC market; marks 5th multi-dealership sale for Kerrigan Advisors in 2020

Incline Village, NV. November 18, 2020 – Kerrigan Advisors, a leading sell-side advisory firm to auto dealers in the U.S., represented and advised Northern Virginia-based Sterling Motorcars on its sale of five luxury franchises to Medford, Oregon-based Lithia Motors, Inc. (NYSE: LAD).  This represents Lithia Motors first acquisition in the Washington DC Market.  Sterling Motorcars, which is comprised of BMW of Sterling, MINI of Sterling, Rolls-Royce Motor Cars Sterling, Lamborghini Sterling and McLaren Sterling, was sold by Thomas and Joyce Moorehead.  

With this transaction, Kerrigan Advisors has now sold more than 105 dealerships since its founding in 2015, making the firm the most active sell-side advisor to the highest value transactions in auto retail. 

“Thomas and Joyce Moorehead are exceptional entrepreneurs who built Sterling Motorcars from the ground up, into a brand synonymous with top luxury and premium service,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “The Moorehead’s contributions to their community, from their investment in their employees to their extensive philanthropy, has left an indelible mark on the industry. It was a true honor to represent them on this once-in-a-lifetime sale and to match them with Lithia Motors, one of the largest automotive retailers in the United States who we feel confident will continue their powerful legacy.”

The Mooreheads opened BMW of Sterling in Sterling, Virginia in Loudon County in 2001. Loudon County, which is the fastest growing county in Virginia and the highest income county in the US, embraced the dealership which rapidly became one of the most successful BMW dealerships in the region.  In 2010, BMW of Sterling was the first DMV (DC Maryland Virginia) BMW dealership to earn the prestigious Center of Excellence Award.  In 2013 and 2016 respectively, Mr. Moorehead became the first African American Rolls-Royce, Lamborghini and McLaren, auto dealer in the world.  Today, these high value luxury dealerships serve a market area that extends well beyond Northern Virginia.

“Making the decision to sell Sterling Motorcars was not one that Joyce and I made lightly; we have served this remarkable community for the past 20 years and have loved working with these brands, which represent the pinnacle of automotive engineering and luxury achievement,” said Thomas Moorehead. “Throughout this process, we knew that Kerrigan Advisors not only had our best interests at heart, but also those of our staff and community and the brands we represented.  We are grateful for the high level of service, sophistication and insight the team at Kerrigan Advisors brought to the sale process, as well as their hard work to ensure the transaction came to a smooth and successful close.” 

Mr. Moorehead is the recipient of multiple business awards and has been a leader of NAMAD (National Association of Minority Auto Dealers) for the past 37 years, including serving as chairman for two terms. The Mooreheads are well known for their extensive philanthropy which includes the Joyce and Thomas Moorehead Foundation (https://www.themooreheadfoundation.org/), which has provided scholarships to students and donations that total over $6 million to families, cultural institutions, civic causes and historically black colleges and universities. The dealerships have worked with the Make a Wish foundation, The Leukemia and Lymphoma Society, Lift Me Up!, March of Dimes, and the Martin Luther King Jr. Cultural Foundation. The Mooreheads are Founding Members of The Museum of African American History and Culture. They recently cosponsored Rosa Parks: In Her Own Words, an Exhibition at the Library of Congress.

“We want to thank our loyal customers for their years of support, and our employees for their years of service and commitment to the community,” said Joyce Moorehead.  “We know that we are leaving you in good hands with Lithia Motors, who will continue to grow and enhance what we have built with Sterling Motorcars.”

“This transaction is further evidence of the current strength of the buy/sell market, which is as active as I have ever seen it, and indicates that buyers are willing to enter new markets for prime assets, such as Sterling Motorcars,” continued Kerrigan.  “The auto industry continues to demonstrate its remarkable durability, even in the face of uncertainties around the pandemic – and much of this resilience is due to superlative auto retailers such as the Mooreheads and forward-thinking auto groups such as Lithia Motors.”

Stephen Dietrich of Holland & Knight served as legal counsel to Sterling.

Kerrigan Advisors is the most active sell-side advisor on larger transactions in the auto retail industry achieving the highest sale proceeds per client of any firm over the last five years.  In addition to its sell-side advisory work, the firm offers strategic consulting services to dealers and their families, including growth planning, capital raising and valuation analysis, creating value at every stage of the auto retail lifecycle.

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

About Kerrigan Advisors

Kerrigan Advisors is a leading sell-side advisor and thought partner to auto dealers in the US.  The firm advises the industry’s leading dealership groups, enhancing value through the lifecycle of growing, operating and, when the time is right, selling their businesses.  Kerrigan Advisors has represented on some of auto retail’s largest transactions, including seven of the Top 150 Dealership Groups in the US, more than any other firm in the industry. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, the firm does not take listings, rather they develop a customized approach for each client to achieve their personal and financial goals. In addition to Kerrigan Advisors’ sell-side advisory and capital raising services, the firm also provides a suite of consulting services including growth strategy, market valuation assessments, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate due diligence.

Kerrigan Advisors publishes The Blue Sky Report®, which is the auto industry's most comprehensive and authoritative quarterly report of dealership buy/sell activity and franchise values, received by over 9,000 industry participants in 35 countries.  To register to receive The Blue Sky Report®, click here: https://www.kerriganadvisors.com/the-blue-sky-report.  Kerrigan Advisors also publishes The Kerrigan Index™, the only monthly index tracking the seven publicly traded auto retail companies. To access The Kerrigan Index™, click here: http://www.kerriganadvisors.com/the-kerrigan-index/.

Kerrigan Advisors’ Founder and Managing Director, Erin Kerrigan, is a recognized expert on dealership valuation, real estate, and buy/sells, and is a frequent speaker at leading auto retail events and conferences, including NADA, JD Power Automotive Roundtable, Automotive News’ Canadian World Congress, AICPA, and NADC. She has also been quoted numerous times by The Wall Street Journal, CNBC, Bloomberg and The Economist and has been a keynote speaker for events hosted by American Honda Motor Company, Audi of America, US Trust, Bank of America, Ohio Automobile Dealer Association, and SunTrust Bank. Kerrigan Advisors’ Managing Director Ryan Kerrigan is also a sought-after industry expert. He is featured in a monthly column for Dealer Magazine and has written Op-Eds for Automotive News.

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

Sale of Midtown Toyota in Chicago marks the 22nd Kerrigan Advisors-led transaction in Chicago since 2018

Incline Village, Nevada, November 12, 2020 – Kerrigan Advisors, a leading sell-side advisory firm to auto dealers in the U.S., represented and advised Illinois-based Resnick Auto Group on its recent sale of Midtown Toyota in Chicago to Michigan-based Victory Automotive Group. The transaction is the 11th Toyota franchise sale Kerrigan Advisors has represented, the 22nd dealership sale in Chicago and the 104th dealership sale overall since 2015. 

“Midtown Toyota has been part of our group of dealerships for over 20 years. We thank Kerrigan Advisors for their expert assistance in making this a successful transaction for our group,” said Phillip Resnick, principal of Resnick Auto Group.

Resnick Automotive Group has owned and operated Midtown Toyota, located in Northwest Chicago in the Belmont Cragin neighborhood, since 1998. The dealership is one of Chicago’s original Toyota franchises. Resnick Automotive Group also owns and operates Schaumburg Toyota and Woodfield Lexus (both in Schaumberg, Illinois) and Mercedes-Benz of St. Charles (St. Charles, Illinois), which they will retain and continue to operate.

“It was our great pleasure to advise Resnick Auto Group in its sale of Chicago’s Midtown Toyota,” said Gabe Robleto, Vice President, for Kerrigan Advisors. “Our mandate was to match Midtown Toyota with a buyer who had the scale to further expand on Midtown’s success and an understanding of operating in an urban market. Victory Automotive Group was the right buyer, given their presence in the Midwest and experience with Toyota.”  

 “Toyota is an extraordinarily high demand franchise in today’s active buy/sell market due to its popularity with consumers, consistent profitability, robust fixed operations and strong OEM relations,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “We appreciated the opportunity to work with the Resnick team on the sale of Midtown Toyota and to shepherd the transaction to a smooth closing.”

Robert E. Neiman of The Neiman Law Firm served as legal counsel to the seller.

Kerrigan Advisors is the most active sell-side advisor on larger transactions in the auto retail industry with the most sale proceeds per transaction of any firm. In addition to its sell-side advisory work, the firm offers strategic consulting services to dealers and their families, including growth planning, capital raising and valuation analysis, creating value at every stage of the auto retail lifecycle.

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

About Kerrigan Advisors

Kerrigan Advisors is a leading sell-side advisor and thought partner to auto dealers in the US.  The firm advises the industry’s leading dealership groups, enhancing value through the lifecycle of growing, operating and, when the time is right, selling their businesses.  Kerrigan Advisors has represented on some of auto retail’s largest transactions, including seven of the Top 150 Dealership Groups in the US, more than any other firm in the industry. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, the firm does not take listings, rather they develop a customized approach for each client to achieve their personal and financial goals. In addition to Kerrigan Advisors’ sell-side advisory and capital raising services, the firm also provides a suite of consulting services including growth strategy, market valuation assessments, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate due diligence.

Kerrigan Advisors publishes The Blue Sky Report®, which is the auto industry's most comprehensive and authoritative quarterly report of dealership buy/sell activity and franchise values, received by over 9,000 industry participants in 35 countries.  To register to receive The Blue Sky Report®, click here: https://www.kerriganadvisors.com/the-blue-sky-report.  Kerrigan Advisors also publishes The Kerrigan Index™, the only monthly report tracking the seven publicly traded auto retail companies. To access The Kerrigan Index™, click here: http://www.kerriganadvisors.com/the-kerrigan-index/.

Kerrigan Advisors’ Founder and Managing Director, Erin Kerrigan, is a recognized expert on dealership valuation, real estate, and buy/sells, and is a frequent speaker at leading auto retail events and conferences, including NADA, JD Power Automotive Roundtable, Automotive News’ Canadian World Congress, AICPA, and NADC. She has also been quoted numerous times by The Wall Street Journal, CNBC, Bloomberg and The Economist and has been a keynote speaker for events hosted by American Honda Motor Company, Audi of America, US Trust, Bank of America, Ohio Automobile Dealer Association, and SunTrust Bank. Kerrigan Advisors’ Managing Director Ryan Kerrigan is also a sought-after industry expert. He is featured in a monthly column for Dealer Magazine and has written Op-Eds for Automotive News.

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

Lithia Motors acquires nine Keyes Automotive Group dealerships in one of the industry’s largest transactions; 7th 'Top 150' Dealership Group sale for Kerrigan Advisors

Irvine, CA, November 10, 2020 – Kerrigan Advisors, a leading sell-side advisory firm to auto dealers in the U.S., represented and advised Los Angeles-based Keyes Automotive Group on its recent sale of nine dealerships to Lithia Motors, Inc. (NYSE: LAD).  Keyes Automotive Group is owned by Howard Keyes and Howard Tenenbaum. The sale encompassed some of the highest volume auto dealerships in the US, including Keyes European (Mercedes-Benz), ranked #2, Keyes Lexus, ranked #9, Keyes Audi, ranked #5, Keyes Hyundai, ranked #3, as well as an additional five high volume dealerships, Keyes Toyota, Lexus of Valencia, Audi Valencia, Mission Hills Hyundai all in the Los Angeles, California market and Bell Road Toyota, located in the Phoenix, Arizona market.

With this transaction, which is one of the largest in the industry’s history, Kerrigan Advisors has now sold more than 100 dealerships since its founding in 2015, making the firm the most active sell-side advisor to the highest value transactions in auto retail.  The sale of Keyes Automotive Group’s nine dealerships is the seventh Top 150 Dealership Group Kerrigan Advisors has sold in the last five years.  

“We are honored to have represented Keyes, one of the most well-respected dealership groups in the country, in its sale to Lithia Motors,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “Keyes has served the Los Angeles area for over 60 years as an award-winning auto retailer and sought-after employer.  Howard Keyes and Howard Tenenbaum instructed our firm to identify a buyer with the scale and standards to continue Keyes’ reputation for stellar customer service and a strong, supportive employee culture.  In Lithia, we found the perfect buyer to carry on this legacy.”

Keyes Automotive Group was founded by Howard Keyes’ father, Jerry Keyes, in 1950 in Van Nuys, California and has since grown to become a top 20 dealership group in the US, according to Automotive News.  Keyes is one of the most recognized brands in the Western region and known for its achievement as one of the highest revenue dealership groups in the country. Along with its outstanding customer service and community involvement, Keyes is perhaps best known to Los Angeles consumers for its catchy Beach Boys’ jingle (“Keyes, Keyes, Keyes, Keyes on Van Nuys”) that has, for over a decade, been played throughout Southern California’s airwaves.

“I am deeply grateful for the decades of support we have received from the communities where we have been proud to do business, and for the employees who have dedicated their time and effort to achieving top customer service and exceptional retail success,” said Howard Keyes. “We are confident that we are leaving our dealerships in the hands of a company that will not only continue our legacy of customer service, but will also extend that legacy’s reach through digital innovation, and provide our employees with great opportunities for career advancement.”

“When we made the decision to sell, it was critical to work with a firm who understood that preserving and enhancing our brand and legacy was as important to us as the terms of the deal. Kerrigan Advisors’ track record of success selling the largest dealership groups in our industry, along with their deep expertise navigating and advising on complex, multi-dealership transactions, was truly invaluable to achieving our goals,” continued Keyes.

Keyes Automotive Group’s powerful brand recognition has been bolstered by the group’s deep investment in community. Their support and donations to local schools and multiple non-profits, including Boys and Girls Clubs, Special Olympics, Bob Hope USO, LA Food Bank, Operation Gratitude, The Geffen Playhouse and many more, has earned them tremendous goodwill – and that extends to their corporate culture. Keyes employees participate in charitable events throughout the year, including toy drives and ‘help the troops’ campaigns.

“Great businesses help make other businesses in their communities successful, and Keyes has always been proud of helping fuel growth not just for our dealerships, but for the community as a whole,” said Tenenbaum. “We are excited to pass the Keyes’ torch onto Lithia Motors who will take these dealerships to the next level, further growing the business in a way that our communities will be proud of.  We are deeply grateful to Kerrigan Advisors’ for the success of this transaction. Their vast relationships in the buyer community were invaluable in identifying the right buyer, while their expertise in closing large transactions proved indispensable. They were with us very step of the way.”

The transaction includes Keyes Toyota, Keyes European (Mercedes-Benz and Sprinter), Keyes Lexus, Keyes Audi, and Keyes Hyundai in Van Nuys, CA, Mission Hills Hyundai in Mission Hills, CA, Lexus of Valencia and Audi Valencia in Valencia, CA, and Bell Road Toyota in Phoenix, AZ. Keyes is retaining Keyes Honda, Keyes Chevrolet, Woodland Hills Honda, Woodland Hills Porsche in the Los Angeles, California market and Centennial Toyota in the Las Vegas, Nevada market.

Larry Braun and Peter Park of Sheppard Mullin served as legal counsel to Keyes. Stephen Dietrich and Sarah Seedig of Holland & Knight served as legal counsel to Lithia.

Kerrigan Advisors is the most active sell-side advisor on larger transactions in the auto retail industry with the most sale proceeds per transaction of any firm over the last five years.  In addition to its sell-side advisory work, the firm offers strategic consulting services to dealers and their families, including growth planning, capital raising and valuation analysis, creating value at every stage of the auto retail lifecycle.

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

About Kerrigan Advisors

Kerrigan Advisors is a leading sell-side advisor and thought partner to auto dealers in the US.  The firm advises the industry’s leading dealership groups, enhancing value through the lifecycle of growing, operating and, when the time is right, selling their businesses.  Kerrigan Advisors has represented on some of auto retail’s largest transactions, including seven of the Top 150 Dealership Groups in the US, more than any other firm in the industry. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, the firm does not take listings, rather they develop a customized approach for each client to achieve their personal and financial goals. In addition to Kerrigan Advisors’ sell-side advisory and capital raising services, the firm also provides a suite of consulting services including growth strategy, market valuation assessments, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate due diligence.

Kerrigan Advisors publishes The Blue Sky Report®, which is the auto industry's most comprehensive and authoritative quarterly report of dealership buy/sell activity and franchise values, received by over 9,000 industry participants in 35 countries.  To register to receive The Blue Sky Report®, click here: https://www.kerriganadvisors.com/the-blue-sky-report.  Kerrigan Advisors also publishes The Kerrigan Index™, the only index tracking the seven publicly traded auto retail companies. To access The Kerrigan Index™, click here: http://www.kerriganadvisors.com/the-kerrigan-index/.

Kerrigan Advisors’ Founder and Managing Director, Erin Kerrigan, is a recognized expert on dealership valuation, real estate, and buy/sells, and is a frequent speaker at leading auto retail events and conferences, including NADA, JD Power Automotive Roundtable, Automotive News’ Canada World Congress, AICPA, and NADC. She has also been quoted numerous times by The Wall Street Journal, CNBC, Bloomberg and The Economist and has been a keynote speaker for events hosted by American Honda Motor Company, Audi of America, US Trust, Bank of America, Ohio Automobile Dealer Association, and SunTrust Bank. Kerrigan Advisors’ Managing Director Ryan Kerrigan is also a sought-after industry expert. He is featured in a monthly column for Dealer Magazine and has written Op-Eds for Automotive News.

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

Sale of Continental Acura, Continental Audi and Continental Mazda dealerships highlights the strength of the buy/sell market, marks 93rd Kerrigan Advisors-led dealership sale since 2015

Irvine, CA, October 26, 2020 – Kerrigan Advisors, a leading sell-side advisory firm to auto dealers in the U.S., represented and advised Continental Motors of Naperville on its recent sale of Continental Acura, Continental Audi, and Continental Mazda. Continental Audi and Mazda were sold to Chicago, Illinois-based Bill Napleton Auto Group, while Continental Acura was sold to Desmond Roberts, owner of Advantage Chevrolet of Hodgkins, Advantage Chevrolet of Bolingbrook and Advantage Toyota of River Oaks, all located in Illinois. These transactions mark the 93rd Kerrigan-led dealership sale since 2015 and the sixth Top 150 Dealership Group Kerrigan Advisors has represented. With this transaction, Kerrigan Advisors is the most active sell-side advisor to the largest dealership groups in the US.

“The auto retail industry is tracking toward record profits in 2020, despite the challenges of COVID-19. Not surprisingly, buyers in today’s active buy/sell market are seeking prime assets such as Continental’s Naperville dealerships,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “Our firm was honored to represent Joel Weinberger in the sale of his dealerships, which are among the most valuable in Chicago. Naperville is an incredible car market, and Joel’s dealerships are known for their impeccable reputation in the community and committed employees.” 

Continental Motors Group, founded in 1961, is one of the oldest and longest-running family-owned dealership groups in the Chicago area. Brothers John and Herman Weinberger opened their import repair shop in Lyons, Illinois in 1961 and quickly became new car dealers with their first franchise, Triumph, in 1962. From that point on, the family business grew through the brother’s legacy of customer support and service, ultimately leading to Joel Weinberger’s ownership of Continental Motors’ Naperville platform.  

“As a family, we are proud and thankful to be a part of the Naperville community, Chicago’s largest car market,” said Joel Weinberger.  “I am incredibly grateful for the years of hard work from my Continental team, and for the support of my customers and the community over the last three decades.” In addition to serving its thousands of happy customers, Continental has also championed local charities over the last 33 years, including the Drive for 135, an annual fundraising event to end homelessness and its annual “Driven to Care” car donation program that has put 56 cars in the hands of needy families over the past 7 years.

“The traditions that my father, John and my uncle Herman started have carried over through the years in my business,” said Weinberger. “Things like exceptional customer service and a commitment to a strong work ethic. That has passed the test of time for us, and that’s how Kerrigan Advisors approached this transaction. We selected them as our exclusive sell-side advisor to represent us for that reason and are very grateful for the expertise and assistance they provided throughout the sale process.  Their preparation, accounting review, due diligence management and ultimately closing assistance were invaluable to our transaction.”

Among Continental Motors of Naperville’s many accolades are being named Naperville’s Best Auto Dealership every year since 2009 by Naperville Magazine; Continental Audi’s recognition, three times, as an Automotive News Best Dealership to Work For, and 13 times as an Audi Magna Society award winner since 2003 as well as an Audi Magna Society Elite winner in 2018 and Continental Acura’s 20-time Precision Team Dealership of Distinction award (more than any other Acura dealership in Illinois) and Acura’s Gold Environmental Leadership Award.

“With a 60-year family legacy and a complex, multi-dealership transaction, it was vital that Kerrigan Advisors dedicate the time and energy necessary to prepare Joel’s group for sale, so we could identify the right buyers for his valuable dealerships and ensure a smooth closing,” continued Kerrigan. “Continental has a lasting family legacy that will continue to grow and evolve with the new owners, both of whom are family run with multiple generations involved.”

The Naperville dealership group is part of the larger Continental Motors Group, which Automotive News ranked as the 130th largest dealership group in 2019. With this transaction, the Weinberger family will continue to own and operate Continental Honda in Countryside (owned by brother Jay Weinberger), and Continental Toyota in Countryside (owned by cousin Cheryl Nelson). Joel Weinberger will retain and manage his Ferrari dealership in Hinsdale, Illinois.

David Blum, Scott Wasserman and Santiago Assalini of Akerman LLP served as legal counsel to the seller. Christine Smith of Crowe served as the seller’s accountant. 

Kerrigan Advisors is the most active sell-side advisor on larger transactions in the auto retail industry with the most sale proceeds per transaction of any firm.  In addition to its sell-side advisory work, the firm offers strategic consulting services to dealers and their families, including growth planning, capital raising and valuation analysis, creating value at every stage of the auto retail lifecycle.

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

About Kerrigan Advisors

Kerrigan Advisors is a leading sell-side advisor and thought partner to auto dealers in the US.  The firm advises the industry’s leading dealership groups, enhancing value through the lifecycle of growing, operating and, when the time is right, selling their businesses.  Kerrigan Advisors has represented on some of auto retail’s largest transactions, including six of the Top 150 Dealership Groups in the US, more than any other firm in the industry. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, the firm does not take listings, rather they develop a customized approach for each client to achieve their personal and financial goals. In addition to Kerrigan Advisors’ sell-side advisory and capital raising services, the firm also provides a suite of consulting services including growth strategy, market valuation assessments, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate due diligence.

Kerrigan Advisors publishes The Blue Sky Report®, which is the auto industry's most comprehensive and authoritative quarterly report of dealership buy/sell activity and franchise values, received by over 9,000 industry recipients in 35 countries.  To register to receive The Blue Sky Report®, click here (https://www.kerriganadvisors.com/the-blue-sky-report).  Kerrigan Advisors also publishes The Kerrigan Index™, the only monthly report tracking the seven publicly traded auto retail companies. To access The Kerrigan Index™, click here (http://www.kerriganadvisors.com/the-kerrigan-index/).

Kerrigan Advisors’ Founder and Managing Director, Erin Kerrigan, is a recognized expert on dealership valuation, real estate, and buy/sells, and is a frequent speaker at leading auto retail events and conferences, including NADA, JD Power Automotive Roundtable, Automotive News’ Canadian World Congress, AICPA, and NADC. She has also been quoted numerous times by The Wall Street Journal, CNBC, Bloomberg and The Economist and has been a keynote speaker for events hosted by American Honda Motor Company, Audi of America, US Trust, Bank of America, Ohio Automobile Dealer Association, and SunTrust Bank. Kerrigan Advisors’ Managing Director Ryan Kerrigan is also a sought-after industry expert. He is featured in a monthly column for Dealer Magazine and has written Op-Eds for Automotive News.

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