INCLINE VILLAGE, Nev.--(BUSINESS WIRE)--Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented Hitchcock Automotive in its sale of three high-volume Toyota dealerships in Southern California.
The sale of Northridge Toyota and Toyota of Santa Barbara to Van Tuyl Companies, and Puente Hills Toyota to Kaminsky Automotive, marks the 149th dealership sale led by the Kerrigan Advisors team since 2015. Kerrigan Advisors, which focuses exclusively on sell-side representation, is the most active sell-side advisor on the highest value transactions in the auto retail industry and has advised on the sale of 17 Toyota dealerships in the last seven years, more than any other firm in the industry.
Hitchcock Automotive has a long and distinguished legacy in southern California. The group was founded in 1971 by industry legend Frederick “Fritz” Hitchcock, who passed away in 2021. Hitchcock began selling Toyotas in 1976, building his Toyota dealerships to some of the top volume stores in their markets. He was a very active advocate in the industry for free trade and lower tariffs. His long record of service included roles as chairman of AIADA's board of directors, who named its Grassroots Leadership Award after him, a co-founder of the Automotive Free International Trade Political Action Committee, president of the California New Car Dealers Association and chairman of the Toyota and Mazda national dealer councils, among many others.
“These dealerships, in so many ways, represent my dad’s extraordinary legacy. It is a bittersweet moment to announce the sale of the Hitchcock dealerships, as we have been a family business for decades. I am thankful to Kerrigan Advisors for running such a seamless sale process for our family,” said Ted Hitchcock, son of Fritz Hitchcock and Partner of Hitchcock Automotive.
“It was very important to the family that we found the right new owners with the vision to continue our dealerships’ record of excellence, success and service in their communities,” said Howard Hakes, President of Hitchcock Automotive. “When the time came to decide to sell, Kerrigan Advisors was our first call. The firm’s deep experience with the Toyota brand, their intelligence on buyers, ability to quarterback a multi-dealership transaction and their attention to every detail made them the perfect advisors to assist our family.”
“It was a sincere honor to represent the Hitchcock family in this important transaction,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “Fritz Hitchcock was a larger than life presence in auto retail, and he will be long remembered for his commitment to our industry. We wish the Hitchcock family all the best as they transition these highly attractive dealerships to Van Tuyl Companies and Kaminsky Automotive.”
Northridge Toyota and Toyota of Santa Barbara are the highest volume dealerships in their submarkets and represent some of Larry Van Tuyl’s first acquisitions since selling Van Tuyl Group to Berkshire Hathaway in 2014. Puente Hills Toyota, which has been the #1 volume new car dealership in Puente Hills for over 30 consecutive years, will join Honda and Toyota of El Cajon as part of Kaminsky Automotive which is owned by brothers Greg and Gary Kaminsky.
“Toyota is a powerful brand nationwide and particularly in Greater Los Angeles, which is one of the largest car markets in the country. In addition to Toyota’s strong market share, Toyota’s franchises are sought after due to their consistently high profitability and Toyota’s partnership business model with its dealers,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors.
Kerrigan noted that Toyota is consistently ranked as one of the top brands by dealers in the NADA Dealer Survey and by buyers in Kerrigan Advisors’ proprietary buyer database. The brand has also held the #1 spot as the most valuable car brand for seven years running, according to BrandZ’s Top 100 Most Valuable Global Brands. As the top-selling brand in LA County, Toyota boasts six of the top 15 best-selling models in the LA market.
“The Hitchcock Automotive transactions are compelling evidence of Toyota’s brand equity, particularly in Southern California – in fact, Toyota’s LA County market share is 33% higher than Toyota’s national market share, with the highest growth in market share of all brands,” continued Kerrigan. “We are proud to have helped Hitchcock Automotive with a triple sale in this fast-moving buy/sell market and are confident that these dealerships are well-positioned for a future of continued growth and success, consistent with Fritz’ impeccable legacy.”
Legal counsel for Hitchcock Automotive was the Los Angeles automobile dealer law firm Manning, Leaver, Bruder & Berberich who has represented them for over forty years.
Kerrigan Advisors is the most active sell-side advisor on larger transactions in the auto retail industry, achieving the highest sale price per client of any firm over the last five years. 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 valuation analysis, creating value at every stage of the auto retail lifecycle.
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 2021 Kerrigan Dealer Survey, click here. Kerrigan Advisors also is the co-author of NADA’s Guide to Buying and Selling a Dealership.
About Kerrigan Advisors
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 on 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.
