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Sale of California dealership group to the 3rd largest auto group in the state reinforces buy/sell market strength in California and nationally; consolidation continues - the big are getting bigger
Irvine, CA, August 4, 2014 – Kerrigan Advisors, a leading national dealership buy/sell advisory firm, advised Irvine, California-based Fladeboe Automotive Group in its successful sale to The Conant Auto Retail Group (The CAR Group). The transaction is the largest to date for The CAR Group. It was completed on August 4, 2014. Terms were not disclosed.
The CAR Group will be acquiring all of Fladeboe Automotive Group’s franchises, including Honda, Volkswagen and Buick/GMC. Ray Fladeboe, the late founder of the group, pioneered the single location auto center concept in Southern California when he created the Irvine Auto Center with a mission to make it easier for customers to shop for cars. Today the Fladeboe Automotive Group, under the leadership of Denice Fladeboe Mock, is one of the top selling dealership groups in the center.
“We have a long history in Orange County and are proud to have served so many Southern California consumers and employees over the years. We are very pleased that our buyer also has dealership roots here and are confident that the CAR Group will continue our tradition of customer service,” said Denice Fladeboe Mock, Dealer Principal of Fladeboe Automotive Group. “In today’s active buy/sell market, we appreciated having the experience and insight of Kerrigan Advisors who ensured that we not only found the best possible buyer, but also shepherded us through a smooth and mutually beneficial transaction. I can’t say enough about Erin Kerrigan’s professionalism, hard work, transaction support, and ability to manage the sale process.”
The CAR Group is the 23rd largest automotive group in the country* with approximately $1 billion in annual revenue. The group owns 11 dealerships in California and Florida, including the largest Honda dealership in the country, Norm Reeves Honda Superstore located in Cerritos, California.
“Orange County is one of the largest automotive markets in the US and we are excited to further expand our footprint in the region. The acquisition of the Fladeboe Automotive Group is our largest transaction to date,” said Dave Conant, founder and owner of The Conant Auto Retail Group. “We thank Kerrigan Advisors for helping to facilitate this multi-dealership transaction.”
The transaction is the first for the recently launched Kerrigan Advisors. Led by Managing Director Erin Kerrigan, a recognized industry expert on dealership buy/sells, valuation, and real estate, the Kerrigan Advisors team has been involved in transactions totaling over $2 billion dollars in automotive, private equity and investment banking.
“We are proud to have advised Denice and her family in the sale of their dealerships,” said Kerrigan. “The completion of this large deal offers further evidence of the strength of the dealership buy/sell market, particularly in major US metros and for top franchises like Honda.”
Kerrigan Advisors monitors conditions in the buy/sell market and publishes an in-depth analysis each quarter in The Kerrigan Quarterly Blue Sky Report. The report includes Kerrigan Advisor’s signature blue sky charts, multiples and analysis for each franchise in the luxury and non-luxury segments. The multiples are based on Kerrigan Advisors’ view of franchise values in the current buy/sell market and can be applied to adjusted pre-tax dealership earnings to estimate blue sky value. To download the latest report, click here.
About Kerrigan Advisors
Kerrigan Advisors is a national dealership buy/sell advisory firm focused on providing a high level of client service for dealership sellers. Led by a team of veteran advisors who have represented transactions totaling over $2 billion dollars in automotive, private equity and investment banking, Kerrigan Advisors customizes each sale process to maximize the seller’s transaction proceeds. With the most comprehensive buyer database in the industry, Kerrigan Advisors has the industry context and expertise to match each seller with the right buyer.
Each quarter, Kerrigan Advisors publishes The Kerrigan Quarterly Blue Sky Report, which is the auto industry's most comprehensive and authoritative quarterly report and analysis of dealership buy/sell activity and franchise values. Kerrigan Advisors’ Managing Director Erin Kerrigan, who authors the report, 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. Her expertise is also featured in a monthly column for Dealer Magazine.
Kerrigan Advisors Media Contact:
Melanie Webber (firstname.lastname@example.org), mWEBB Communications, 424.603.4340