Sale of five Sacramento dealerships to Canadian-Based Knight Automotive Group marks the 175th dealership transaction led by Kerrigan Advisors since 2015
Incline Village, NV - December 8, 2022 -- Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented Lasher Auto Group in its sale of five dealerships: Elk Grove Acura, Audi, Chrysler, Dodge, Jeep, Ram (CDJR), Subaru, and Volkswagen to Knight Automotive Group. The Lasher Auto Group dealerships are among the area's highest volume dealerships, including Elk Grove CDJR, which is the 3rd and 14th highest volume CDJR dealership in California and the US, respectively, as well as Elk Grove Subaru, the highest volume Subaru dealership in Sacramento based on 2021 new unit sales.
"We were honored to represent Lasher Auto Group on its sale to Knight Automotive Group" said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. "This transaction is a perfect example of the tremendous value buyers place on high volume, high performing dealership platforms in top growth markets, such as Elk Grove, California. The Lasher Auto Group as one of the highest volume CJDR dealers in the US resulting in a significant price premium due to strong buyer demand despite some of the economic headwinds on the horizon."
Established in 1955, Lasher Auto Group began when Wes Lasher opened his initial Volkswagen store in Sacramento. In 1972, he opened an Audi dealership, and eventually handed over management to sons Mark and Scott Lasher. In 2003, the family expanded to Elk Grove, a high growth Sacramento suburb and grew the business along with the community. Today, Lasher Auto Group is consolidated in the Elk Grove Auto Mall. The dealerships dominate the Elk Grove auto retail market, with 34% market share of new units sold in 2021. Elk Grove is the second highest volume car market in Sacramento, with approximately 180,000 residents and a population growth rate of 17% since 2010 - 131% faster than the US average.
"We've always prioritized our long-standing connection to the thriving Sacramento auto retail market, particularly our customers and employees" said Lasher Auto Group Co-Owner Scott Lasher. "We are grateful that Kerrigan Advisors identified a private buyer with the same community, customer and employee focus - one committed to growing a group in California and being great stewards of our family's dealership group going forward." Mark Lasher, Lasher Auto Group Co-Owner added: "Kerrigan Advisors is the premier advisor for dealership groups for a reason. They provide guidance through every phase of the transaction and do so in alignment with their client's strategic objectives. They ushered this transaction from beginning to a very successful outcome and found an international buyer who appreciated the lucrative financial opportunity the Sacramento auto retail market, particularly in Elk Grove, presents."
"This transaction reflects a trend we reported on in our second quarter 2022 Blue Sky Report. Specifically, the rise in international dealers coming to the US to acquire dealerships, a reflection of the value these buyers place on our strong franchise laws" said Ryan Kerrigan, Managing Director of Kerrigan Advisors. "We believe this trend will continue as the OEMs seek to disrupt the legacy auto retail model, particularly outside the US where franchise protections are weak, and ultimately implement their agency model which could have a negative impact on future franchise values."
The transaction marks the 171st, 172nd, 173rd, 174th and 175th dealerships sold by Kerrigan Advisors since 2015, bringing the total number of franchise sales they have led in 2022 to 48, and marking their 9th multi-dealership transaction for the year.Stephen Dietrich, Sarah Seeding and Karl Lott of Holland & Knight served as legal counsel to the seller. David Meyer, Gus Paras and Hen Amir served as legal counsel to 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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