Date published: September 13, 2016
Sale of ‘Top 100’ dealership group to one of the largest automotive retailers in the United States marks 27th dealership sale for Kerrigan Advisors since 2015
Kerrigan Advisors, the leading sell-side advisory firm focused exclusively on auto retail, represented and advised New York-based Carbone Auto Group, a Top 100 dealership group, in its successful sale to Lithia Motors (NYSE: LAD), the fifth largest automotive retailer in the US. The transaction, which represents the 27th dealership sale managed by Kerrigan Advisors since July 2015, was completed on September 12, 2016. Terms of the transaction were not disclosed.
Lithia Motors will be acquiring all of Carbone Auto Group’s 11 auto retail dealerships, representing over $500 million in revenue from 17 franchises, including BMW, Toyota, Honda, Subaru, Chevrolet, Cadillac, Buick, GMC, Ford, Hyundai, Chrysler, Dodge, Jeep, Ram, and Nissan. Carbone Auto Group, founded in 1920 by Joe Carbone, is the 94th largest auto group in the country according to Automotive News. Enessa Carbone, Chief Executive Officer and granddaughter of Joe Carbone, will continue to oversee the group under Lithia’s ownership. She will be joined by Alex Carbone, grandson of Joe Carbone, who will continue to oversee the group’s variable operations.
“We could not have completed this sale without the guidance and expertise of Kerrigan Advisors. Erin Kerrigan and her team did an exceptional job representing our family and running the sale process,” said Ms. Carbone. “We are excited for Carbone’s next chapter under Lithia’s ownership and I look forward to working with Lithia’s management team to grow our platform in the Northeast.”
“It was very important to us that we find the right buyer for the Carbone family, particularly one that would continue the Carbone commitment to their community, employees and customers,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “Lithia is that buyer. We are very happy that Enessa and Alex Carbone will continue to lead the Carbone Auto Group and that their family’s legacy in the auto retail industry will live on.”
Since July 2015, Kerrigan Advisors has represented over $550 million in client proceeds associated with the sale of multi-franchise platforms and stand-alone dealerships. With the completion of the Carbone sale, Kerrigan Advisors will have sold two of the Top 100 dealerships groups in the US, making the firm the top sell-side advisor to large dealership groups in the US. In December 2015, Kerrigan Advisors represented the Louisville, Kentucky-based Sam Swope Auto Group in its sale to Florida-based AMSI (Sam Swope Auto Group was ranked 89th by Automotive News).
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 Advisor’s 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 the monthly KAR Index™ composed of the seven publicly traded auto retail companies with operations focused on the US market. The KAR Index is designed to track dealership valuation trends, while also providing key insights into factors influencing auto retail. To access the KAR Index™, click here.
Erin Kerrigan is 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 and the Wall Street Journal.
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 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.
Kerrigan Advisors is honored to work with auto retailers throughout the US to enhance the value of their enterprise. Learn more about our services below:
Customized and confidential sell-side services for higher value dealerships and dealership groups nationwide, with a proven record of achieving the highest sale price per transaction of any firm in the industry.
Capital raising and partnership structuring for growing dealership groups, supported by the largest investor database in the industry.
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Contact us to learn more about Kerrigan Advisors’ client services, or to have a conversation about the buy/sell market. All of our conversations are 100% confidential.