If you’ve spent any time in Southwest Florida in the past 10 years or so, you know the commercials for Fuccillo Kia and its spokesman, Billy Fuccillo. They’re HUUUUUGE!
That era comes to a close this week, with the news that Fuccillo Kia of Cape Coral and Port Charlotte have been sold.
But those ads? Apparently they worked. Ryan Kerrigan, Managing Director of Kerrigan Advisers, brokered the deal. He says that the Fuccillo dealerships were top sellers not just in Florida but nationwide, which made them an attractive target for a purchase.
“They were very high-volume stores, they certainly would have been in the top 20 KIA stores in the country,” said Kerrigan.
The buyer was the first new publicly traded auto retailer to come on the scene in 15 years, a company called LMP Automotive Holdings. They paid nearly $70 million for the dealerships.
“The total deal including real estate was $69.1 million dollars,” said Kerrigan. “And that was $36 million in good will, or blue sky as we call it in our industry, and $33 million in real estate.”
Kerrigan went on to say that the car business in general is one of those doing extremely well during the pandemic, and that Florida is an especially popular place for the business.
“We track these trends nationally, and over a third of all buyers of auto dealerships in the US are looking for deals in Florida,” he said.
I think I know what Billy Fuccillo would say.
It’s gonna be HUUUUUGE!
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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