Sale of Texas Buick GMC dealerships highlights strong demand for top volume franchises in states with favorable business environments and marks Kerrigan Advisors’ 6^th dealership sale in Texas in 2023

Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented Houston, Texas-based Beck & Masten Auto Group in the sale of Beck & Masten Buick GMC North, Buick GMC South and Buick GMC Coastal Bend to Houston, Texas-based Group 1 Automotive (NYSE: GPI). This marks the 184^th, 185^th and 186^th dealership sale transaction led by Kerrigan Advisors since 2015. Beck & Masten is a dominant auto group in Houston and Corpus Christi, retailing more than 11,700 vehicles in 2022 and representing more than one third of Buick GMC sales in the Houston MSA. The dealerships are amongst the highest volume Buick GMC franchises in Texas and the US, ranking as the #1 Buick GMC dealer in Texas for 22 consecutive years and the #1 Buick GMC dealer in the US six times.

Owners John Beck and James Masten first met at a Houston Chevrolet dealership in 1971, and subsequently partnered to start a successful wholesale company. Eight years later, the pair purchased Pontiac GMC in Tomball, Texas. The dealership was eventually relocated to Houston and is now called Beck & Masten Buick GMC North. The dealership has since won the Dealer of the Year Award 13 times from General Motors, a recognition of its decades-long accomplishment as one of the highest volume Buick GMC dealerships in the country. The success of Beck & Masten Buick GMC North brought about Beck & Masten Buick GMC South in 2000, which also grew into one of the top-performing domestic dealerships in Houston and Texas. Buick GMC South has been recognized with multiple Mark of Excellence and Dealer of the Year awards — success that has come about due to their focus on premier customer service and excellent employee relations.

“Beck & Masten has been an important auto retailer in the Houston market for decades, and we were honored to represent John Beck and James Masten, as well as their families, in this big decision,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “They've been partners for 50 years, and built very impressive market share for Buick GMC in the region. Group 1 Automotive has added a substantial domestic group to their Houston platform.”

“John and I have spent the majority of our adult lives building this business, and the decision to retire was a huge one for us,” said James Masten, co-owner of Beck & Masten Auto Group. “It was incredibly important that this be done right, for my family and for the families of our employees. I knew we needed to go with the best in the industry when it came to representing our sale, and it did not take long to figure out that Kerrigan Advisors was the best. When it comes to getting big transactions done, they have the most experience. They guided us along the way and led us to a great outcome.”

“We have spent our careers building dealerships, not selling them. James and I wanted an advisor exclusively focused on selling dealerships like ours,” said John Beck, co-owner of Beck & Masten Auto Group. “It's been a real pleasure to work with the professionals at Kerrigan Advisors throughout the sale process. We needed their guidance, and they expertly gave it to our families throughout the transaction process ensuring the sale was a success for all involved.”

“We always appreciate the opportunity to work with leading Texas dealers like Beck & Masten,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “This transaction demonstrates that the Texas market is one of the best in the country. There is incredible buyer demand for top volume franchises in the Lone Star State, given its highly favorable business climate, population growth and quality of life. We expect to see a disproportionate share of the 2023 US buy/sell market take place in Texas.”

Texas is the 2^nd largest auto retail market in the nation, representing 9% of total US light vehicle sales. It is also among the most attractive to franchise buyers due to the state’s high sales per rooftop (6^th highest in the nation) and 41% increase in light vehicle registrations since 2001. Notably, Beck & Masten’s three Buick GMC dealerships have an 8% market share for Buick GMC sales in Texas.

Kerrigan Advisors has sold six dealerships in Texas in 2023, making the firm the most active advisor in the state, as well as the most active sell-side advisor on larger transactions in the auto retail 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 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 2022 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 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.

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