Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented Mesa, Arizona-based East Valley Nissan, owned and operated by Greg Burk, in its sale to Phoenix, Arizona-based Courtesy Automotive Group. This marks the 207th dealership sale led by Kerrigan Advisors since 2015. It is the sixth Phoenix dealership Kerrigan Advisors has advised on, making the firm the leading sell-side advisor in the market having represented 2/3 of all buy/sell transactions in Phoenix since Q4 2020.
"We were proud to work with Greg Burk on the sale of this high-performing dealership in such an important auto retail market," said Gabe Robleto, Vice President of Sell-Side Advisory. "We applied our extensive experience in Arizona to finding a buyer who not only understood the value of this retail market, but who also could continue East Valley Nissan's success in sales and customer service and its position as a valued part of the Mesa community. We were pleased to identify the perfect match in Scott Gruwell and his aptly named Courtesy Automotive Group."
East Valley Nissan is located in the Superstition Auto Mall in Mesa, one of Phoenix's fastest growing cities and home to several universities and significant real estate developments. Phoenix is one of the top Nissan markets in the country by volume, market share, profitability and fixed operations as well as being the 3rd fastest growing metro in the US: in 2022, Phoenix's population growth outperformed the US by 381%, and the metro is expected to reach more than 7.6 million residents by 2055.
"I am grateful to Kerrigan Advisors for their tremendous work on this transaction; they exceeded my expectations in every regard," said Greg Burk, owner of East Valley Nissan. "Selling an import franchise in a high-demand market is a complex undertaking. Bringing on Kerrigan Advisors to help complete the sale was a stellar value-add, and it is why I am confident that the East Valley Nissan team and its current, and future, customers are in excellent hands."
In addition to being a top Nissan market, Arizona is a top auto retail market and its dealerships are some of the most profitable in the US, with one of the highest revenue-per-dealership in the country. Nissan, which is in the midst of tremendous sales growth fueled by production improvements and a refreshed product pipeline, boasts cost-friendly vehicles, including the #1, #8 and #10 most affordable vehicles in the US, an ideal lineup for Mesa's young and rapidly growing residential population.
"Arizona truly represents the sweet spot when it comes to buy/sell demand and dealership valuations ? a top auto retail market fueled by population growth and a business-friendly environment. This, coupled with Nissan being a high-performing franchise in Phoenix, typifies where the buy/sell market is today with buyers exhibiting a deep focus on the top franchises and the top markets," said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. "We were honored to be back in a market we know well to help Greg navigate this transaction and bring it to a successful conclusion that benefitted seller, buyer, franchise and community. Kerrigan Advisors is honored to be the leading sell-side advisor in the Phoenix market and expects to see continued buyer demand for franchises in the area."
Kerrigan Advisors is the most active sell-side advisor on larger transactions in the auto retail industry. In 2023, the firm is on track to sell 52 dealerships representing over $2.6 billion in client proceeds, more than any buy/sell advisor in the industry. The firm attributes its success to its team's laser focus on fulfilling each client's personal and professional goals. In addition to its sell-side advisory work, the firm offers strategic consulting services to dealers and their families, including growth planning, capital raising, and acquisition valuation analysis, creating value for their clients at every stage of the auto retail lifecycle.
John Norling of Gallagher & Kennedy served as legal counsel to the seller. Christine Smith of Crowe LLP was the seller's accountant. Michael Smalley of Bergin, Frakes, Smalley & Oberholtzer served as legal counsel to the buyer.
About Kerrigan Advisors
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 225 dealerships representing more than $7 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 Indextm 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 Indextm, click here. To read the 2022 Kerrigan Dealer Survey, 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.