Dealership mergers and acquisitions have remained remarkably active so far this year, even in the face of substantial economic challenges that gained steam in the latter half of 2022. Dealers are actively pursuing new paths in droves, whether exiting the market or expanding their operations. This heightened buy/sell activity reflects the industry’s resilience and dealers’ eagerness to embrace fresh opportunities. Here’s a closer look at four notable M&A deals that closed successfully this spring.
Kerrigan Advisors announced on May 2 that it had advised Kinsel Motors in the sale of the Kinsel Toyota and Kinsel Ford, Lincoln, and Mazda dealerships to Doggett Automotive Group (“Doggett”). Kerrigan Advisors Managing Director, Erin Kerrigan, noted that Kinsel Motors’s success “drove tremendous buyer demand, with Doggett ultimately being the best match for the family.” Kinsel Motors President Craig Kinsel praised Kerrigan Advisors for making the process “smooth” and added, “The secret to [Kinsel’s] success is no secret — it has always been the people who come to work every day and provide stellar customer service.” With the latest sales, Kerrigan Advisors remains one of the most active sell-side advisors for major automotive dealership transactions.
Doggett has already won several prominent awards for the Houston-based Landmark Ford dealership it purchased in 2018. Speaking about the latest transactions, Doggett’s President and Chief Operating Officer, William Doggett, said his group is a “huge believer in the future of Ford given the current Ford strategy.” He added that Doggett is “extremely excited to be [a Toyota] dealer” and will “give Toyota automotive customers the same great service [Doggett has] provided industrial customers over the past 30 years.” Doggett’s Vice President and General Manager, Jason Mosley, said Doggett “expects these Ford, Lincoln, and Mazda stores to add over $200 million in sales volume to Doggett’s growing enterprise within 18 months.”
Kerrigan Advisors is the premier sell-side advisor and thought partner to auto dealers nationwide. 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 some of auto retail's largest transactions and advised more of the largest dealership groups in the US than any other buy/sell 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 monitors conditions in the buy/sell market and publishes an in-depth analysis each quarter in The Blue Sky Report®, which includes Kerrigan Advisors' signature blue sky charts, multiples, and analysis for each franchise in the luxury and non-luxury segments.—To download a preview of the report, click here.—The firm also releases monthly The Kerrigan Index™ composed of the seven publicly traded auto retail companies with operations focused on the US market. The Kerrigan Auto Retail Index is designed to track dealership valuation trends, while also providing key insights into factors influencing auto retail.—To access The Kerrigan Index™, click here.—To read the—2023 Kerrigan OEM Survey, click here.—Kerrigan Advisors also is the co-author of NADA's Guide to Buying and Selling a Dealership.
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