FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Haig Partners LLC, the leading buy-sell advisory firm to auto, heavy truck and RV dealers in the U.S., served as the exclusive sell-side advisor on the sale of the #2 highest-volume Kia dealership in the nation, Hollywood Kia, on its sale to Morgan Auto Group. Hollywood Kia is located in Hollywood, FL and was owned by Joe Levy and Steve Gutstein. The sale of Hollywood Kia sets a record for the most blue sky value ever paid for a Kia dealership, according to Kia executives.
Under Steve Gutstein’s leadership, who has been a partner and served as general manager since 2019, Hollywood Kia has won numerous awards for sales and service:
- #2 in the nation with 1,582 new Kia sales through May 2024
- #2 in the nation with 4,342 new Kia sales 2023
- #2 in the nation with 3,744 new Kia sales in 2022
- #1 for Kia sales in the Southeast Region
- Kia President’s Club 2020 to 2023
Joe Levy began his career selling vehicles when he was in college in 1991. He heard fellow students complaining about long walks to class in the Florida heat. Sensing an opportunity, he drove down to Key West in a U-Haul box truck to pick up 40 mopeds in various states of disrepair from the Moped Hospital. After some reconditioning, he sold them to his fellow students for a $15,000 profit. He then began exporting mopeds and moped components. After college, he sold all types of used equipment before acquiring Hollywood Kia. At the time, the dealership was selling fewer than eight new units per month and losing more than a million dollars per year. To become profitable, the dealership sold pre-owned vehicles of all kinds, including work trucks, lawnmowers, and other equipment. Joe Levy grew the dealership to one of the top volume used car dealers in Broward County prior to acquiring the Kia franchise in 2008.
The performance changed significantly as a result of several factors. Kia developed much more desirable products and grew its market share from 3% in 2010 to 5% in 2023. Also, Steve Gutstein became a partner in 2019. He had extensive experience at a Hyundai dealership in South Florida and was able to build a high-performing team and an environment that was highly attractive to customers. And, finally, Hollywood, FL has undergone significant redevelopment. Thousands of new housing units have been built or are planned in the area over the past decade.
When discussing the transaction, Joe Levy said, “It was a pleasure for our family to own Hollywood Kia for the past 16 years, but we have decided to focus our efforts on real estate development. The auto industry is becoming a more complex business where companies like Morgan Auto Group will thrive in the future. Larry “Captain” Morgan and I became friends during this process, and I know they will take good care of our people. My partner, Steve Gutstein, will be staying on to continue to run the dealership, and together, they will be a dream team for Kia.
“I’m also grateful to my buy-sell advisors and lawyer who helped make this deal come together. Alan Haig, Derek Garber and Matt DeSantis of Haig Partners lived up to their impressive reputation. They have relationships with leading buyers around the country and they delivered in terms of price, confidentiality and speed. I’d also like to thank our attorney, Alex Kurkin of Kurkin Forehand Brandes LLP. Alex has been a trusted advisor to us for many years and he helped to make this transaction go very smoothly for us.”
With the purchase of Hollywood Kia, Morgan Auto Group owns 77 dealerships, placing it #8 in the Automotive News Top 150 list and making it the largest group in Florida. Larry Morgan, Chairman at Morgan Auto Group, stated, “It’s been a true pleasure working with Joe. Brett Morgan, our CEO, and I are pleased that Steve Gutstein will be joining our team to help Hollywood Kia reach even greater heights. We are big believers in the South Florida market, as evidenced by our recent acquisitions of some of the top Toyota, Honda and BMW dealerships in the U.S. We are excited to add one of the largest Kia dealerships in the country to our expanding group as we seek to offer a world-class buying and servicing experience to consumers all over the state of Florida.”
Alan Haig, President of Haig Partners, said, “This transaction is a story of entrepreneurial success. Joe Levy had no background in auto retail but worked hard over the years to build up enough capital and confidence to acquire a money-losing dealership in what was, at that time, a rough area. He knew the store had much more potential, so he recruited Steve Gutstein, who had experience selling Korean vehicles in high volumes in South Florida. Steve and Joe turned an independent dealer mindset into a monster in the Kia franchise world, selling more than 4,000 new units last year. And, contrary to what many OEMs require, they didn’t need a big, shiny facility to achieve this volume.
“Their success was also helped by Kia, which has launched many highly desirable vehicles and gained significant market share in recent years. Kia has improved in franchise value more than perhaps any other franchise during this period. South Florida has also grown significantly over the past decade as new residents arrive from all over the world, attracted by the climate, low taxes, business-friendly laws and career opportunities. For these reasons, dealerships in South Florida have become extremely valuable. In January of this year, we advised on the sale of the nine dealerships in South Florida owned by Vista Motors and South Motors, which we believe set record-high values for BMW and Honda dealerships. Last summer, we advised on the sale of Al Hendrickson Toyota, which we believe set a record high value for any dealership ever sold at that time. This area is our home turf, and we can properly describe the opportunity for dealers to make strong profits. Buyers have confidence that dealerships will continue to provide an attractive return on investment thanks to their diversified business model, which brings healthy profits in almost all economic environments.”
The team at Haig Partners has been involved in the purchase or sale of 29 dealerships so far in 2024, and 101 in the state of Florida in their careers. Over the past 24 months, Haig Partners has achieved record high sales prices for its clients who owned BMW, Honda, Kia and Toyota dealerships in Florida and a Stellantis dealership in North Carolina.
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About Haig Partners
Haig Partners is a leading buy-sell advisory firm that helps owners of higher-value auto, truck, RV and motorsports dealerships maximize the value of their businesses when they are ready to sell. The team at Haig Partners has advised on the purchase or sale of more than 580 dealerships with a total value of over $11 billion. It has represented 28 dealership groups that qualify for the Top 150 Dealership Groups list published by Automotive News, more than any other firm. Clients of Haig Partners benefit from the group's collective experience as former executives with leading companies such as Ally Financial, AutoNation, Bank of America, Credit Suisse, Deloitte, FORVIS, J.P. Morgan, the Sewell Automotive Companies and Toyota Financial Services. Leveraging its unmatched expertise and extensive relationships, Haig Partners guides clients to successful outcomes through a confidential and customized sales process. The firm authors The Haig Report®, the longest-published industry quarterly report that tracks trends in auto retail and their impact on dealership values, and co-authors NADA’s Guide, “Buying and Selling a Dealership.” Haig Partners team members are frequent speakers at industry conferences and are regularly quoted in reputable media outlets, including Reuters, Forbes, The Wall Street Journal, The New York Times, CNBC, BBC, Automotive News, Wards, CarDealershipGuy and CBT News. For more information, visit https://www.haigpartners.com.
