Lexus of Sacramento and Lexus of Roseville, the only Lexus dealerships in the greater Sacramento metro area, acquired by Lithia Motors
IRVINE, Calif.–(BUSINESS WIRE)–Kerrigan Advisors, a leading sell-side advisory firm to auto dealers in the U.S., represented and advised the owner on the recent sale of Lexus of Sacramento and Lexus of Roseville (RPM Luxury Sales, Inc.) to Lithia Motors. RPM Luxury Sales, Inc. is comprised of the only two Lexus dealerships in the Sacramento MSA. The sale marks the 86th and 87th dealership sale, and the 6th and 7th Lexus franchise sale, Kerrigan Advisors has represented since 2015, more than any other advisory firm in the industry.
In 1989, RPM opened Lexus of Sacramento on Fulton Avenue, Sacramento’s original car row, and in 2003 the company opened Lexus of Roseville as a companion point. Lexus of Sacramento and Lexus of Roseville earned the Elite of Lexus award for a combined 36 years; Sacramento was first to be named Elite in 1992 and the store went on to earn the distinction for 19 consecutive years from 1999 to 2018. Lexus of Roseville, meanwhile, earned the Elite distinction every single year since its opening in 2003 for a total of 16 years. The Elite of Lexus award is the highest honor a Lexus dealer can receive.
“The Elite award is a perfect symbol of RPM’s spirit of excellence and high level of customer and community service,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “These dealerships are truly top notch, located in the highest volume auto retail markets in the Sacramento MSA, with impressive histories of success. Our experience with 7 previous Lexus transactions was key in enabling us to lead this sale process to success for RPM.”
“Kerrigan Advisors’ deep insights into the current buy-sell market, their expertise selling Lexus franchises, and their attention to how this decision factored into our company’s long term business goals, gave us peace of mind as they shepherded us through a successful sale process,” said the owner of RPM Luxury Sales, Inc.
In addition to representing the dealerships’ decades of first-class sales and service commitment, Kerrigan was also focused on balancing the high buyer demand for Lexus in a major California metropolitan area.
“It was important, going into this, to remember that Lexus has the highest sales per franchise of all luxury franchises and the lowest number of dealers in its network,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “Of course, Lexus is known for its results. We applied our experience with other Lexus transactions, and examined the unique and remarkable story of Lexus in the Sacramento MSA, to achieve a transaction that met the goals of our client. In the last 12 months alone, we have represented on the sale of 5 Lexus franchises, as the network finds more families deciding now is the time to exit, primarily due to a lack of succession.”
David Meyer of Arent Fox LLP served as legal counsel to the seller.
Kerrigan Advisors is the most active sell-side advisor in the auto retail industry. In addition to its sell-side advisory work, Kerrigan Advisors offers strategic consulting services to dealers and their families, including growth planning, capital raising and valuation analysis, creating value at every step 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 auto retail’s largest transactions, including five of the Top 100 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 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 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. 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 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.
If you are a buyer in today’s market, Kerrigan Advisors welcomes the opportunity to learn about your acquisition criteria and include you in Kerrigan Advisors’ proprietary Buyer Database.
We welcome the chance to learn more about your acquisition criteria so that we can contact you in the event a client matches your investment profile.
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.