What prompted you to sell your four Chrysler-Dodge-Jeep-Ram dealerships in Omaha and Lincoln, Nebraska, in 2022?
Mickey Anderson: I believed the market was ideal for selling these franchises. We are focused on diversifying geographically and the sale of these stores in our home market will provide us capital to pursue opportunities in new markets.
As a family-run business, what was the most challenging part of the sale?
Mickey Anderson: These stores had been in our group for two generations. There was an emotional tie to the stores, the manufacturing partner and, of course, our employees. It was very important to work with a consultant who shared our sensitivities and worked to find us the best buyer.
What surprised you about the sale process?
Mickey Anderson: Even though I have been involved in several acquisitions, I was surprised by the amount of time it took to complete the sale of multiple stores. Keeping the project on schedule and keeping all parties working toward the closing date was a daily task. Kerrigan’s experience and engagement were essential to getting the deal closed.
Private groups can deliver a unique partnership, which provides great value for the OEMs.
What do you think will be the biggest challenges and opportunities for private, family-owned and operated dealership groups over the next decade?
Mickey Anderson: Private, family-owned dealership groups are entrepreneurial and can adjust to changing market conditions more quickly and effectively than larger competitors. This is a tremendous advantage in today’s market. Private groups can deliver a unique partnership, which provides great value for the OEMs.
How are the risks of a near-term recession impacting how you manage your business and plan for future growth?
Mickey Anderson: Rising interest rates and the risk of a near-term recession cause me to use great discretion in pursuing new opportunities. Markets and manufacturers need to be evaluated based on their ability to perform in a much more challenging economy, rather than on their profits during the recent COVID-impacted years.
What do you think the auto retail business will look like in 10 years?
Mickey Anderson: All the direct-to-consumer modalities that became prominent during the pandemic are popular with consumers and will leave our sales models forever changed. Customers and OEMs will continue to prefer simplified, digital sales processes and transparent pricing models. Dealers will need to embrace these new strategies to remain relevant in the future.
Why did you choose Kerrigan Advisors?
Mickey Anderson: As a sell-side advisor, Kerrigan Advisors was singularly focused on helping me achieve my goal of finding the right buyer for my dealerships. They are very familiar with dealership groups across the country and developed an impressive list of qualified buyers. They were attentive to every detail and helped me successfully navigate several unforeseen complications. The entire team was expert, thoughtful and completely trustworthy.