Kerrigan Advisors, the leading sell-side advisor and thought partner to auto dealers nationwide, represented Dallas, Texas-based Cowboy Toyota in the sale of its dealership to The CAR Group (also known as Norm Reeves), the 23^rd largest US dealership group as ranked by Automotive News. This transaction represents Kerrigan Advisors’ fourth Texas Toyota franchise and 18^th Texas franchise sold since May 2023. Kerrigan Advisors has now advised on the successful sale of a major Toyota dealership in each of the largest Texas markets, including Dallas, Houston and San Antonio, as well as Beaumont in the last 18 months.

“Kerrigan Advisors leads the industry in representing Toyota franchises, especially in Texas, which is why they were the logical choice to represent us in our sale,” said Ron Schwartz, Co-Owner of Cowboy Toyota. “Their strategic guidance and focused sale process as well as their incredible professionalism ensured our sale was a success. Erin Kerrigan and her team never lost focus of our financial and personal objectives for our sale. We are so grateful that Cowboy will be in the hands of another Texas-based family-owned business that will provide our employees with a great future in the car business.”

Cowboy Toyota, owned by Ron Schwartz, Bob Cannon, the Bohn Brothers and Tobias Fulton for the last 18 years, is located in the densely populated eastern portion of Dallas County. The buyer, The CAR Group, owned by the Conant family, represents a collection of high-volume, award-winning retail automotive franchises operating under the “Norm Reeves” brand. Norm Reeves represents more than 16 franchises in Southern California, North Texas and Western Florida including Honda, Toyota, Hyundai, Ford/Lincoln, VW, Subaru and Infiniti.

“This was a unique opportunity for the right buyer to acquire the most sought-after brand in one of the nation’s highest growth markets. The sale of Cowboy Toyota highlights the continued strength of the Texas market, and Toyota’s leadership within it,” said Erin Kerrigan, Founder & Managing Director of Kerrigan Advisors. “We were honored to represent the shareholders of Cowboy Toyota in this marquee transaction. From start to finish, our goal was to leverage our deep expertise in the Texas market to ensure our client received full value for their highly valuable franchise. Nearly every national dealership consolidator is seeking a Toyota franchise in Texas and Cowboy’s blue sky value reflected that high buyer demand.”

For over 15 years, Toyota franchises have led the industry with the highest sales per franchise due to Toyota’s limited dealer network and high new vehicle sales volume. In the latest Kerrigan Advisors Dealer Survey, 93% of dealers expect the value of the Toyota franchise to either increase or remain at today’s elevated levels, marking the fifth consecutive year Toyota has topped this metric. Toyota’s consumer appeal is equally strong, earning recognition as the best value brand by IntelliChoice in 2023.

With the fastest-growing population in the country since 2020, Dallas is a key hub for industries like transportation, business services and healthcare. The metro boasts 24 of Texas’ 55 Fortune 500 headquarters and the second-highest concentration of such companies in the South. Dallas is ranked as the #1 Best City to Start a Business in the state and the #2 metro area with the most corporate facility projects in 2023.

“We are proud to be recognized as the leading advisor to Texas dealers, a position we’ve earned through our many successful transactions over the past year and a half,” said Ryan Kerrigan, Managing Director at Kerrigan Advisors. “Kerrigan Advisors has now sold a major Toyota dealership in the largest Texas markets in the last 18 months. In today’s buy/sell market, there is a clear flight to quality, with buyers seeking well-established, high-performing dealerships in top markets with top franchises. This demand is driving highly favorable terms for sellers, making it an opportune time for those looking to capitalize on top franchises in top markets. We are proud to have worked with the team at Cowboy to bring this sale to such a successful conclusion.”

This transaction represents Kerrigan Advisors’ 279^th dealership sold and 35^th Toyota dealership sold since the firm’s inception in 2014, and its 74^th franchise and 7^th Toyota franchise sold year-to-date. In the last 18 months alone, Kerrigan Advisors has led the Texas dealership buy/sell market, representing on the sale of 18 franchises, more than any firm in the industry.

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 275 dealerships representing $9 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 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 2023 Kerrigan Dealer Survey, click here. To read the 2024 Kerrigan OEM Survey, click here. Kerrigan Advisors also is the co-author of NADA’s Guide to Buying and Selling a Dealership.

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