Sale of #2 volume Buick GMC dealership in strong auto retail market reinforces continued demand for dealerships in the South; transaction marks Kerrigan Advisors’ 277th dealership sale, 85th since 2020 in the Southern region.
ATLANTA--(BUSINESS WIRE)--Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented Memphis, Tennessee-based Sunrise Auto Group in the sale of its remaining dealership, Sunrise Buick GMC Covington Pike, to Memphis-based Jim Keras Automotive. The completion of this transaction represents Kerrigan Advisors’ 277th dealership transaction, including 85 in the Southern region since 2020.
“We are proud to have completed the final sale in Bob Berkheimer’s group of high-performing dealerships,” said Gabe Robleto, Senior Vice President, Sell-Side Advisory at Kerrigan Advisors. “Collaborating with Bob and his team on the sale of all three of his dealerships has been a privilege, and we are gratified that we were able to find the ideal buyer for this final dealership, bringing his legacy with Sunrise Automotive to a successful close.”
Bob Berkheimer founded Sunrise Auto Group more than three decades ago. As a multi-year recipient of GM’s prestigious Mark of Excellence and Dealer of the Year awards, Sunrise is a market leader for Buick GMC in Memphis, which is ranked the third largest metro area in the Southeast and is home to notable Fortune 500 companies including Federal Express, AutoZone and International Paper. Buick GMC Covington Pike is located in Shelby County, which makes up 67% of metro’s population and is the #2 highest volume Buick GMC dealership in Memphis. Jim Keras Automotive Group operates six dealerships across Tennessee and Missouri, representing a range of brands including Chevrolet, Nissan, Subaru and CDJR.
“With the completion of this transaction, I want to thank Kerrigan Advisors for shepherding our group’s entire sale process with great care and attention,” said Bob Berkheimer, President of Sunrise Auto Group. “I also want to extend my heartfelt gratitude to our employees and the Memphis community for their loyalty to our dealerships over the past few decades. I am thrilled we found such a strong fit for our Covington Pike dealership community in Jim Keras Automotive.”
Buick GMC is the premier domestic brand in Tennessee given its strong lineup of nearly a dozen SUVs and trucks and its expected pipeline and boasts strong overall market share in the state. In 2023, Buick GMC was the top performing domestic brand for new unit sales growth and the brand was a top performer in the 2023 Kerrigan Dealer Survey for franchise valuation expectations in 2024.
“We were honored to be chosen by Bob to complete the final sale of the Sunrise Auto Group collection of dealerships,” said Erin Kerrigan, Founder & Managing Director of Kerrigan Advisors. “This transaction marks our 85th transaction in this region since 2020, which reflects a continued regional focus towards the business-friendly, high growth markets in the South. Based on our analysis, we expect the strength in the Southern buy/sell market to continue, and we were proud to support Bob on this highly successful transaction.”
Tennessee’s high-growth status is driven by its business-friendly approach and favorable tax laws. Tennessee’s GDP has surged an impressive 85% since 2010, outpacing the US growth rate by 25%. In 2021, the state achieved a remarkable milestone of 10 years of new business growth, and it ranked #3 in America’s Top States for Business by CNBC. Notably, Memphis residents benefit from a lower cost of living, which attracts residents and businesses to the region.
Stephen Dietrich and Brooke Sizer of Holland & Knight served as legal counsel to the seller. James W. Cameron III and Jonathon D. Mason of Cameron Worley, P.C. served as legal counsel for the buyer.
Kerrigan Advisors is the leading sell-side advisor and thought partner to auto dealers nationwide. Since its founding in 2014, the firm has led the industry with the sale of over 280 dealerships representing $9 billion in client proceeds, including the third largest transaction in auto retail history – the sale of Jim Koons Automotive Companies to Asbury Automotive Group. 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. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, Kerrigan Advisors does not take listings, rather they develop a customized sales approach for each client to achieve their personal and financial goals. In addition to the firm’s sell-side advisory services, Kerrigan Advisors also provides a suite of consulting and investor 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 Dealer Survey, click here. To read the 2024 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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