The flurry of dealer group moves continued with activities in California and Texas involving Qvale Automotive Group and Principle Auto.
According to a news release from the Presidio Group on Thursday, the investment bank specializing in mergers and acquisitions, capital raising and investments in the auto retail and consumer mobility sectors exclusively advised Bruce Qvale and Qvale Automotive Group on the sale of six dealership franchises to the Umansky Automotive Group.
The dealership franchises include Audi, Honda, Jaguar, Land Rover, Porsche and Subaru in Livermore, Calif.
The transaction meant the departure out of California by the Qvale Automotive Group, which was founded by Bruce Qvale’s father, Kjell Qvale, in 1947.
In March, the Presidio Group advised Bruce Qvale on the sale of his Jaguar Land Rover Stevens Creek dealership franchises to US Auto Trust. In the news release from Presidio, Qvale recapped the latest transaction.
“This was a complex transaction involving many manufacturers, and it went smoothly thanks to the Presidio team’s expertise, unmatched process, and careful attention to detail. They are consummate professionals and are the best advisors in the business,” Qvale said.
“This transaction, while bittersweet, marks the sale of our family’s remaining dealerships in California as we consolidate and focus our efforts on our Florida dealerships,” he added.
Meanwhile, Presidio’s news release also conveyed the anticipation Umansky has for venturing into the Golden State in Livermore, which is southeast of San Francisco and draws on the Silicon Valley, San Francisco, and East Bay markets. Presidio noted the area has a median household income of more than $100,000 and is home to 38 Fortune 500 companies including eBay, Netflix, Apple, Nvidia and Gap.
Presidio went on to mention the Tri-Valley area, where Livermore is situated, also includes the fast-growing cities of San Ramon, Danville, Dublin, and Pleasanton. The population in the Tri-Valley area is growing twice as fast as the Bay Area as a whole.
“This strategic acquisition of strong brands and significant volume is the ideal way for us to enter the California market,” Umansky Automotive Group chairman Dan Umansky said. “We look forward to continuing our tradition of world-class customer service and community involvement with the teams at these dealerships.
“The Presidio Group’s deep knowledge of the market and the manufacturers made this a very smooth transaction,” Umansky added.
Like the entire M&A space, it’s been an active year for Presidio. Two of its top executives recapped what’s happened so far this year, including the Qvale transaction, as well as looking ahead for what might be in store for dealership transactions.
“We were honored to again represent Bruce Qvale, a long-time friend and client, in this transaction,” said Brodie Cobb, founder and chief executive officer of The Presidio Group. “The Qvale family has made exceptional contributions to the West Coast automotive market for many years.”
Presidio president George Karolis then said, “The Qvale family made a strategic decision to exit the California market, and we were privileged to help them achieve that goal. This collection of dealership franchises is an exceptional combination of luxury and volume brands that are all in high demand, especially in such a strong M&A market.
“So far in 2021, Presidio has represented our clients in the sale of 71 franchises, including Lithia’s acquisition of The Suburban Collection, the largest number of franchises sold to date in a strategic transaction. We have a very full pipeline and expect the rest of 2021 to be very active,” Karolis went on to say.
Alex Kurkin of Kurkin Forehand Brandes, LLP served as legal counsel to Qvale. David Porteous of Evans Petree, PC served as legal counsel to Umansky.
The Presidio Group provided exclusive M&A advisory services to the Qvale Automotive Group through its wholly owned investment bank, Presidio Merchant Partners LLC.
New Hyundai store in Texas
In other dealer group news surfacing this week, Principle Auto announced the opening of its newest automotive dealership — Principle Hyundai Boerne — in Boerne, Texas.
Located at 32275 B W-Interstate 10 and adjacent to Principle INFINITI of Boerne, this new rooftop with inventory space for 360 vehicles is 10 minutes away from The Rim Shopping Center serving the Boerne, Fair Oaks, Helotes and San Antonio areas.
Principle Auto chief operating officer Mark Smith spent 25 years in the luxury automotive industry before teaming up with co-owner and chief executive officer Abigail Kampmann to create Principle Auto, which has growth plans to expand across Texas and the United States.
“Our mission statement at Principle Auto is ‘We live to provide exceptional care,’” Smith said in a news release. “As a member of our community, we want you to be comfortable with choosing Principle Hyundai Boerne and Principle Auto. Our online purchasing and online service scheduling tools are available to accommodate your schedule, and we will strive to make your sales or service experience as convenient as possible.”
Kampmann added, “At Principle Auto, our customers and their vehicles are an extension of our family, and we will treat you as a member of our family. Through a combination of exceptional value and our dedication to providing world-class service, we always aim to provide our customers with a great experience. We are thrilled to add Principle Hyundai Boerne to our family, and we cannot wait to serve you.”
“The Mailman” now is delivering Toyota, Ford, Lincoln and Chevrolet vehicles in Arkansas.
Karl Malone, who had that nickname while playing basketball in the NBA for 19 years, grew his business this week with the Karl Malone Auto Group by acquiring three new-vehicle franchises in El Dorado, Ark.
According to a news release, the Teague stores — including Teague Toyota, Teague Ford/Lincoln and Teague Chevrolet — are now Karl Malone Toyota of El Dorado, Karl Malone Ford/Lincoln and Karl Malone Chevrolet, respectively.
“They are proud to continue the tradition of excellence that the Karl Malone name brings in customer service and pricing,” the group said in a news release that also mentioned Malone also owns and operates Karl Malone Toyota of Ruston, La.,
With the addition of the Teague stores, Malone owns 10 dealerships, including powersports and automotive, and a body and paint shop in Utah.
Malone is a familiar celebrity in both Louisiana and Utah.
He grew up in the Bayou State and played college basketball at Louisiana Tech. Malone then played in the NBA for 19 years.
Malone made 14 All-Star appearances, 11 All-NBA first-team selections, four all-defensive nods, two league MVPs, two All-Star MVPs, all while with the Utah Jazz. He also earned two Olympic gold medals, the first with Michael Jordan, Magic Johnson, and the “Dream Team” in 1992.
In 2005, Malone announced his official retirement from basketball.
Earlier this year, Malone partnered with Jeff Teague, owner of the Teague automotive dealerships, as they donated $20,000 to a fund they started to help the victims of a recent refinery fire.
The “once-in-a-lifetime environment” for dealerships changing hands doesn’t appear to be dissipating. At least it didn't in the first quarter.
Kerrigan Advisors highlighted the dealership buy/sell market once again set records to begin 2021, a result of a unique confluence of market factors that resulted in 66 completed transactions, up 20% quarter-over-quarter.
The firm indicated the performance capped 12 months of consolidation activity that resulted in an “unprecedented” 300 completed transactions.
In Q1, Kerrigan Advisors pointed out that most dealerships — regardless of location, franchise and facility — continued to achieve historic profit levels, lifting the valuations of all franchises to new highs.
Kerrigan Advisors’ estimate of the average dealership’s blue-sky value is now $8.5 million, a 10% increase as compared to 2020 and a rise of 33% from 2019.
“The once-in-a-lifetime environment that made 2020 a record year for the automotive buy/sell market was extended, and amplified, by auto retail’s tremendous profitability in Q1, fueling a historic level of acquisition activity,” Kerrigan Advisors founder and managing director Erin Kerrigan said in a news release announcing the availability of the firm’s First Quarter 2021 Blue Sky Report.
“As COVID cases diminished, U.S. consumers emerged from the pandemic with a tremendous amount of capital from savings and government stimulus, as well as great demand for personal mobility,” Kerrigan continued. “This demand, coupled with limited supply, drove dealership profitability to new heights in the first quarter, topping what many thought was an unsurpassable fourth quarter.”
Through March, Kerrigan Advisors determined dealership profits spiked 82% as compared to the six-year pre-pandemic average, resulting in a historic 4.1% net-to-sales margin. The firm pointed out that low inventory resulting from the chip crisis did not appear to dampen consumer demand.
In fact, Kerrigan Advisors highlighted that consumers flush with cash and spurred by low-interest rates, bought vehicles “right off the transport truck.” As a result, consumer spending on new vehicles in the first quarter of 2021 surpassed pre-pandemic levels for the first time.
“We see no sign of consumer demand, high dealership profits and accelerated buy/sell activity abating any time soon, especially as dealers continue to leverage, and pay-forward, the operational efficiencies and digital strategies they adopted during the pandemic,” Kerrigan said.
“While new-vehicle inventory levels will be historically low during the critical summer selling season, rebounding fixed operations, as well as higher-margin used-vehicle sales, will help to offset these short-term challenges.”
Not surprisingly, according to the Blue Sky Report, record earnings by the publics led to record market capitalizations, resulting in higher blue sky multiples as compared to the end of 2020.
The firm calculated that the publics’ spend on acquisitions increased by 220% versus Q1 2020. Lithia continued to lead that charge, closing on the purchase of 10 dealerships during the quarter working closer to the company’s stated goal to add $50 billion in revenue over the next five years.
Kerrigan Advisors went on to mention capital market support contributed to a 53.3% rise in multi-dealership transactions, which represented over one third of all completed transactions in the first quarter of 2021.
The firm added that import non-luxury franchises also saw their share of the buy/sell market rise by seven percentage points to 37%, with Toyota leading all imports at 8.3% of the buy/sell market.
What might be ahead in the M&A space
Also contained in the latest report by Kerrigan Advisors, the firm identified three trends that are expected to impact the buy/sell market for the remainder of the year, including:
— A growing number of dealers will sell in 2021 hoping to lock in current tax rates
— Buyers finance growth with low interest rate debt, rather than expensive private equity
— An alternative dealership valuation model emerges based on revenue instead of earnings
“The disruption associated with digital retailing, accelerated by COVID-19, may be the catalyst for change to auto retail’s historic valuation paradigm,” said Ryan Kerrigan, managing director of Kerrigan Advisors.
Rather than focusing on a multiple of earnings, Lithia, for example, introduced the concept of a percentage of revenue, reporting that most of its transactions are valued between 15% and 25% of revenue, according to the firm.
“This revenue valuation methodology, which is highly accretive based on Lithia’s current blue sky multiple and above market profit margins, is designed to feed Wall Street’s appetite for high revenue growth companies,” Ryan Kerrigan added.
More details by brand
According to the Kerrigan Advisors’ report, buyers have revised the way they apply blue sky multiples, with most applying them to an average of pre-pandemic and post-pandemic performance.
The firm said buyers are “hedging their bets,” giving equal weight to the potential for 2021’s profitability to sustain in the near term, while considering the possibility of an eventual return to pre-pandemic earnings in the future.
The report made two adjustments to blue sky multiples in the non-luxury segment, increasing Hyundai’s and Kia’s high-end multiple and upgrading their multiple outlooks to positive.
“Kia and Hyundai are producing exceptionally designed vehicles, meeting consumers demand for trucks over cars, and not only outperforming the market in unit sales in 2020 and 2021, but also effectively managing the chip crisis, with fewer inventory delays,” Erin Kerrigan said.
As Toyota exceeded Ford’s market share in 2020, with Q1 sales outpacing the industry by 73% and that share expected to grow, Kerrigan Advisors upgraded its multiple outlook to positive from steady.
The firm also noted that Subaru’s multiple outlook was also increased as it continues to make significant sales gains.
“Overall, we anticipate a thriving buy/sell market throughout 2021,” Erin Kerrigan said. “We estimate that over 50% of the industry is in the midst of some form of generational transition, spurred by the economic roller-coaster of the last 12 months.
“Increasingly, 2021 is viewed as a unique opportunity to exit at peak values and potentially lower capital gains tax rates, particularly given the challenge in assessing the impact of industry change on future valuations,” she went on to say.
The quarterly report from Kerrigan Advisors includes analysis of all dealership transaction activity for the year and lays out the high, average and low blue sky multiples for each franchise in the luxury and non-luxury segments.
To sign up to receive the quarterly report, go to this website.
Turns out the vehicles on dealership lots nowadays aren’t the only things at stores soaring in value.
Fueled in part by record-level dealership profits, Haig Partners said demand for stores is soaring as the average blue-sky value per rooftop has reached the highest values the boutique investment banking and buy-sell advisory firm has recorded.
Haig Partners pegged its estimate at $9.0 million in Q1 2021, up 34% from 2019 and 11% from the end of 2020.
The firm also pointed out that dealership Q1 profits jumped 197% year-over-year, making stores so attractive to buyers like Lithia Motors, which so far just this month has purchased five stores in Texas and two others in southern California after making a pair of deals in April, including for the Suburban Collection.
“Dealers have enjoyed the unprecedented bust-to-boom period for about a year now,” Haig Partners president Alan Haig said in a news release that also highlighted the release of the Q1 2021 Haig Report, a quarterly endeavor that tracks trends in auto retail and how they impact dealership values.
“The strong demand from consumers paired with a lack of supply from the OEMs has created a gusher of profits,” Haig continued. “No one could have predicted business conditions could be so good for dealers for so many months. Investors are optimistic about the outlook for our industry as every publicly traded retailer, franchised and used, saw its valuation skyrocket during the pandemic. Dealers large and small are equally bullish about our future. We see an increasing number of dealers wanting to take advantage of current conditions to sell.
“And high prices are not the only reason some of the dealers have decided that now is the time to sell,” Haig went on to say. “Dealers are aging, some have concerns that it may be increasingly difficult to compete with larger groups that can offer more choice and convenience to customers, and some want to sell before capital gains taxes go up.”
Haig Partners recapped that buy-sell activity in the first quarter surpassed pre-COVID levels and blue-sky values are now at record high levels with all regions of the U.S. seeing plenty of buy-sell activity
The firm said public company spending continued to be strong in Q1 of this year with a total of $443M spent on domestic acquisitions, a 226% increase compared to Q1 2020. The massive increase in spending is attributable primarily to Lithia’s acquisitions of stores in Florida and Arizona that totaled $383.5M.
“We expect Lithia to continue its aggressive pace as it executes its plan to grow to $50 billion in revenue by the end of 2025,” Haig Partners said in the news release. “Private buyers are also active as they purchased about 80% of the dealerships that traded hands in Q1 2021.”
The firm reiterated that the Haig Report is based on data gathered from many reputable public sources, as well as interviews with leading dealer groups and dealers, bankers, lawyers and accountants who specialize in auto retail.
The report can be downloaded via this website.
NOTE: Updated with more details about Akron Auto Auction's purchase of Value Auto Auction.
Whether it’s among dealer groups, auctions, tech providers or beyond, June has accelerated the auto industry’s momentum in the buy-sell/M&A space.
Lithia Motors & Driveway, for instance, continued its aggressive expansion Tuesday, announcing it has purchased two luxury dealerships in Van Nuys, Calif.: BMW of Sherman Oaks and Acura of Sherman Oaks.
Lithia projects the stores will bring in $185 million in combined annualized revenues. The BMW store is Lithia’s first in Southern California.
“We welcome the BMW of Sherman Oaks and Acura of Sherman Oaks teams to the LAD family,” Lithia president and chief executive officer Bryan DeBoer said in a news release. “We are excited to add our first BMW store in Southern California and capture the significant potential that exists.”
Since announcing a five-year plan in 2020, Lithia is close to $7.1 billion in total expected annualized revenues acquired. While this latest purchase is in Southern California, Lithia has focused on bulking up its footprint in the Southeast and Central US.
“We are well ahead of schedule on the network development portion of our five-year plan,” DeBoer said. “Our network is essential to conveniently and affordably meet the needs of our customers throughout their entire vehicle ownership lifecycle.”
Elsewhere among the public auto retailers, Penske Automotive Group said Friday it has expanded into the Charlotte market, buying Mercedes-Benz of South Charlotte, located in Pineville, N.C. This is its first store in the area.
The wholesale side of the auto industry has been active with M&A-related moves, as well.
This month, Chad Bailey, who is president of Akron Auto Auction, announced on LinkedIn the purchase of Value Auto Auction in Crooksville, Ohio.
More details have since been shared about the purchase.
Chris and Bob Fahey, who founded Value Auto Auction, will remain as consultants. The Akron partners and management joined them on June 3 for the official first sale and ribbon-cutting.
The purchase occured on June 1.
"We truly believe that this auction is a diamond in the rough. A strong dealer base, staff focused on exceptional customer service and exponential growth made this a no-brainer," Akron Auto Auction president Chad Bailey said in a news release.
He later added: "What sealed the deal was talking to Bob and Chris and seeing their commitment to their customers and staff as well as their desire to grow on multiple levels.
"Being able to utilize our strong online and national presence as well as focus on the growing markets in southeast and central Ohio, gets our blood pumping on many levels. Factor in our strong in-house finance company that will be incorporated at Value Auto Auction, and we truly believe we are poised for massive success."
In May, KAR Global purchased Auction Frontier, the developer of the Velocicast cloud-based auction simulcast solution. Not only does Velocicast power KAR’s own ADESA Simulcast and Simulcast+ platforms, it also provides the technology behind the simulcast sales of more than 300 wholesale and retail auctions throughout North America and Australia.
Meanwhile, on the tech/software side of automotive, during just the past week:
— Solera Holdings announced that it has completed its acquisitions of Omnitracs, DealerSocket and eDriving.
— CDK Global acquired digital vehicle sales platform Roadster.
— Reynolds and Reynolds announced Tuesday it has bought Gubagoo, a provider of “conversational commerce” and retail solutions for dealers and automakers.
In a little less than a month from first making the decision known publicly, Solera Holdings announced on Monday that it has completed its acquisitions of Omnitracs, DealerSocket and eDriving.
Omnitracs is a leading fleet management platform, while DealerSocket is a SaaS provider to the automotive industry and eDriving is the digital driver risk management partner for many of the world’s largest commercial fleets.
Solera highlighted in a news release that its expansion through these transactions is “transformative” for both customers and the industry as “customers around the world will benefit from lower complexity and reduced friction at all touchpoints in the vehicle lifecycle with fully integrated, intelligent technology platforms.”
Solera now has operations in more than 90 countries
“We are excited to continue transforming the industry with the additions of Omnitracs, DealerSocket and eDriving. These acquisitions enable Solera to further enhance our end-to-end vehicle lifecycle solutions for customers and bridge the gap between vehicle and driver performance on a global scale,” Solera chief executive officer Darko Dejanovic said in the news release.
“Solera is uniquely positioned to lead the industry through innovation, geographic expansion and additional strategic acquisitions,” Dejanovic went on to say.
The Charlotte, N.C., area is the heart of NASCAR and home to two of the nation’s largest dealership groups: Hendrick Automotive Group and Sonic Automotive, both of which have deep lineages in the sport through their respective founders, Rick Hendrick and Bruton Smith.
And now another large dealership group whose founder has strong ties to auto racing is taking a spin in the Queen City.
Penske Automotive Group, headquartered in Bloomfield Hills, Mich., and helmed by motorsports legend Roger Penske, said Friday it has expanded into the Charlotte market, buying Mercedes-Benz of South Charlotte, located in Pineville, N.C. This is its first store in the area.
The dealership is Penske’s 26th Mercedes location worldwide and is projected to bring in annualized revenues of $150 million, the retailer said.
“We are thrilled to enter this new market area and we welcome the Mercedes-Benz of South Charlotte team to Penske Automotive Group,” Penske Automotive Group president Rob Kurnick said in a news release.
“With the completion of this acquisition, Penske Automotive Group has now added over $700 million in expected annualized revenue to its operations this year as the company drives to its target goal of achieving $1 billion in earnings before taxes in 2023,” Kurnick said.
Sonic has multiple locations in the Charlotte area, as does Hendrick. Group 1 Automotive has one store in the area, in nearby Rock Hill, S.C.
Pedder Auto Group buys Calif. CJDR store
In other news on the dealership M&A front, Performance Brokerage Services announced on May 29 that Pedder Auto Group has purchased Poway Chrysler Dodge Jeep Ram and Poway Hyundai from Mark Abelkop.
These were the final two stores owned by Abelkop, who is moving into semi-retirement. He worked with Performance Brokerage Services to sell the stores to Pedder, a Southern California-based group owned by David Pedder.
In a news release, Performance Brokerage Services co-founder Jason Stopnitzky, who was the exclusive agent for the deal, said: “It was a pleasure to work with such fine principals during this transaction. David Pedder is a progressive, forward-thinking dealer, who surrounds himself with some of the best talent in the business. I anticipate we will see tremendous growth from Pedder Auto Group in the future. This was a great fit to take over the legacy Mark Abelkop has built in Poway.”
The McConkey Auction Group, which purchased ABS Auto Auctions in 2020, has transferred ABS ownership to EBlock, and July 12 will be the first ABS auction on the EBlock platform.
ABS will be a key piece of EBlock’s national expansion.
ABS is a completely digital auction company that has 10 physical facilities located throughout California, Arizona, Nevada and Southern Oregon.
MAG chief executive and president Bob McConkey, who has an ownership interest in EBlock, as well, has transferred his ownership in ABS to his stake in EBlock.
“EBlock is now the owner of ABS, as we focus on migrating the technology,” McConkey said in a May interview with Auto Remarketing.
In terms of the reasons behind the transfer, McConkey said that it helps to simplify and align his focus, given his existing investment in EBlock.
Additionally, he said, “because EBlock is a rapidly growing technology company with a strong reputation, it provides a lot more resources to expand the EBlock marketplace across the country, with ABS as the launching pad.
“We’ve already got a massive customer base, and a similar methodology for digital sales. And so, this really jumpstarts our U.S. expansion,” McConkey said, referring to EBlock, where he is also a board member.
In early 2020, EBlock partnered with Auction Edge to provide independent auctions with a way to hold online dealer-to-dealer auctions. That partnership began with the McConkey Auction Group and was essentially EBlock’s strategy for its U.S. rollout, after its growth in Canada.
“Our core focus is going to be building out our own digital marketplace, while providing the best auction experience in the industry,” said EBlock CEO Jason McClenahan, who joined McConkey on the call. “We’re going to build the marketplace for dealers to transact directly with us. That is our top priority. For independent auctions who want to consign and sell through our marketplace they absolutely can, but we will build out the national customer base for them to leverage.”
ABS is based in Southern Califorrnia, but beyond the Golden State, it has 10 locations throughout the West, including Nevada, Oregon and Arizona.
As to those physical facilities, they will remain, said McClenahan.
“We’ve never wavered on that. So, these facilities will evolve; they will get bigger,” he said. “I see them, instead of (being) holding compounds, being logistics centers to provide a lot of those ancillary businesses, but all through technology.”
In terms of next steps and a timeline, McClenahan said: “We’re in the process of transitioning the business now. The McConkey Auction Group are key partners of ours, Bob’s a board member and partner/investor in our company. They’ve been managing the ABS business under a management agreement and helping us to prepare for the migration to the EBlock platform.”
Going back to the roots of the EBlock and MAG relationship, both McClenahan and McConkey “come from auction roots,” McConkey said, and EBlock made sense as a way for MAG to extend its digital strategy.
McConkey has since invested in EBlock and joined its board.
McClenahan and McConkey agreed that the acquisition of ABS and transitioning their ownership into the EBlock fold was the best decision for the ABS, MAG and EBlock teams.
“I had been aware of ABS over the years and as I started looking at ABS,” said McConkey. “[And] while the technology is not the same, the dealer experience is very similar, which is that it is a digital way to experience a live auction event, where cars are sold in 60 seconds, and where buyers and sellers, which are the real core of any auction, come together in an uncompromised digital auction event.”
“There’s a run list provided well in advance of the scheduled event, where buyers can do their research, just like a live auction. Everything about it is like a live auction, where you put buyers and sellers together and in an urgent auction environment you get a whole bunch of business done instead of dragging this thing out for hours or days or whatever a lot of these other platforms do,” he said.
“So that led me to the acquisition of ABS. The transition of ABS to the EBlock platform was always the plan. As this evolved it made the most sense to transition our ownership to EBlock as well, and create a more cohesive national strategy with ABS as our launch pad.”
It’s been a busy month for the team at Performance Brokerage Services, as the automotive dealership brokerage firm announced its involvement in two more closings this week.
After being involved in the transaction of a Toyota store in Washington, the firm also helped to facilitate the moves involving a Minnesota Subaru rooftop and a Chrysler Dodge Jeep Ram dealership.
According to separate news releases, Performance Brokerage Services advised Scott Bement in the sale of St. Cloud Subaru in St. Cloud, Minn., to an unspecified buyer. The firm also announced the sale of Plaza Chrysler Dodge Jeep Ram in Orangeburg, S.C., from Joseph Nolette to Tony Thomas.
Performance Brokerage Services noted that Bement originally purchased St. Cloud Subaru in November 2006, moving his family to the city northwest of Minneapolis so he could be running the store daily. Bement built a new facility in 2015 that nearly doubled the dealership’s size to keep up with its growing demand.
Bement mentioned in the news release his happiness that the franchised store will remain a fixture in the community at its current location at 141 Park Avenue South in St. Cloud.
Subaru St. Cloud has partnered with the local Boys and Girls Club and donated proceeds generated through Subaru’s Share the Love program for the past seven years, totaling more than $213,000.
“It was a privilege to have represented Scott Bement in the sale of his Subaru dealership,” said Performance Brokerage Services Midwest partner Paul Kechnie, who served as the exclusive agent for this transaction.
“Subaru is a highly desirable franchise, demonstrating exceptional performance in specific markets and regions, and St. Cloud Subaru was no exception,” Kechnie continued. “We thank Scott for entrusting our team to guide him through the buy-sell process and to capitalize on this unique moment in time.”
The Performance Brokerage Services team also helped another principal capitalize on the active buy-sell market as part of the transaction the South Carolina Chrysler Dodge Jeep Ram dealership.
According to another news release, the dealership will remain at its current location at 2801 St. Matthews Road in Orangeburg but operating with a new name — Tony T Chrysler Dodge Jeep Ram of Orangeburg.
Performance Brokerage Services highlighted Thomas began his career in the automotive business more than 20 years ago, holding a broad range of positions within dealerships retailing both domestic and import brands.
Thomas previously was a partner at Hyundai of Silsbee in east Texas who also has been actively involved with the Houston area Boys and Girls Club of America mentoring program as well as his own foundation started in 2011, the Tony T Foundation, which also looks to help at-risk youth.
One of Thomas’ colleagues, Lekeitha Morris, had this to say: “I have known Tony over 30 years in several roles. Over the years, I have found Tony to demonstrate exceptional organizational skills and unprecedented time management skills. I have witnessed him completely change the trajectory of dealerships.”
Now Thomas will be looking to do the same with Tony T Chrysler Dodge Jeep Ram of Orangeburg as Nolette makes a pivot with his dealership business.
“Attorney Mark Ornstein at Bass Sox Mercer referred me to Mr. Joseph Nolette to help sell his dealership in Orangeburg, South Carolina so that he could focus on his Florida dealerships,” said Performance Brokerage Services Southeast partner George Chaconas, who was the exclusive advisor for this transaction.
“It was an honor and privilege representing Mr. Nolette. Buddy Irby, the CFO and operations manager, was instrumental and an integral part in facilitating the transaction. I want to thank Joe and Buddy very much for the opportunity to be of service. Best wishes,” Chaconas went on to say.
Both transactions triggered praise by the involved parties for Performance Brokerage Services, which has been involved in more than 200 deals during the past five years.
Bement said, “Buying or selling an auto dealership can be a challenging transaction. I was happy to have people with experience like Paul Kechnie and Performance Brokerage Services to work through the details with me. Paul was always available, professional, and fair. Paul and Performance Brokerage Services have my recommendation.”
And Thomas added, “I would like to thank and highly recommend Performance Brokerage Services for helping with this acquisition. George Chaconas and Courtney Bernhard worked hard to identify the type of opportunity I was looking for and also provided excellent communication during the process. I am looking forward to working together on future deals.”
According to a news release from Performance Brokerage Services, McCurley Integrity Dealerships sold one of its dealerships to the Lum Family.
Performance Brokerage Services was involved in the sale of McCurley Integrity Toyota in Walla Walla, Wash., to the Lum Family, which has owned and operated dealerships for more than 50 years.
David Lum opened the family’s first dealership in 1969 in his hometown of Astoria, Ore. The store was originally Toyota of Astoria, but the operation has since moved six miles to Warrenton and renamed Lum’s Auto Center, offering Toyota, Chrysler, Dodge, Jeep and Ram.
The company added another store in 2018, again with the help of Performance Brokerage Services, with the purchase of Lum’s Buick GMC Cadillac in McMinnville, Ore.
The newly acquired Toyota dealership will remain at its current location at 606 North Wilbur Ave. in Walla Walla and be renamed Walla Walla Toyota. Justin Teubner, former general sales manager at Lum’s Auto Center of Warrenton, is now a partner and general manager for Toyota of Walla Walla.
Over the last five years, Performance Brokerage Services has been represented in the sale of more than 200 dealerships.
“We would like to thank McCurley Integrity Dealerships for entrusting us with the sale of their Toyota dealership in Walla Walla Performance Brokerage Services partner Jesse Stopnitzky said in the news release. “Working with two first-class and highly ethical organizations, the transaction was smooth, quick and remained confidential through the closing.
“It was important that we found a buyer who shared a similar philosophy of supporting and enhancing their communities. We wish the Lum Family great success with their acquisition,” Stopnitzky continued.
McCurley Integrity Dealerships was founded in 1981 by Bill McCurley. The company still has five stores in the state of Washington, with locations in each of the Tri-Cities and offering six brands. The company believes in being a part of its local communities and participates in numerous charitable events.
For the past 19 years, McCurley has organized an annual Octoberfest that raises donations for the local food banks during the holiday season. Bill McCurley’s son, Mason McCurley, serves as president.
The Lum family has remained active in the Astoria community by supporting various non-profit organizations and serving on boards across Clatsop County.
The dealerships are now under the leadership of David Lum and his wife Shirley’s three daughters Lori, Julie, and Pam.
Representing the Lum Family in this transaction were Craig Nichols and his son, Geoff Nichols, of Nichols Law Group, based in Portland, Ore.
Representing the McCurley Integrity Dealerships in this transaction was Jim Aiken of Aiken Law Group based in Issaquah, Wash.
