Kerrigan Advisors Represents Beck & Masten Auto Group in Sale of Houston Area Kia Dealership to Group 1 Automotive

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 Kia to Houston, Texas-based Group 1 Automotive (NYSE: GPI). This marks the 187^th dealership sale transaction led by Kerrigan Advisors since 2015, and 11^th Kia dealership sold.

The sale underscores the emerging power of the Kia brand in fast-growing, business-friendly markets like Texas. Beck & Masten Kia is ideally located in Tomball, a northwest Houston suburb adjacent to the fast-growing and affluent Woodlands area.

“Beck & Masten Kia’s success represents a compelling example of Kia’s tremendous accomplishments in recent years and the rising value of the franchise, particularly in large and growing metro areas, such as Houston,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “The brand has grown market share 39% in the US since 2019, more than any other non-luxury franchise and its sales per franchise now surpass Honda, Subaru and Hyundai. Not surprisingly, buyer demand for the franchise has skyrocketed as evidenced in this transaction.”

According to the 2022 Kerrigan Advisors’ Dealer Survey, Kia had the highest expected valuation gain of all franchises: close to half (46%) of dealers surveyed expected the franchise to increase in value, surpassing Toyota and Hyundai for the first time. “We expect buyer demand for Kia franchises to grow throughout 2023, thanks to strong satisfaction among dealers, a refreshed lineup of vehicles, and the return of customer incentives as inventory increases,” said Erin Kerrigan.

Owners John Beck and James Masten began their association in 1971, selling cars together at a local Chevrolet dealership. That partnership would eventually expand into ownership, first with a wholesale company, and, over the years, a long list of successful dealerships. Over the last four decades, Beck & Masten Auto Group has been honored with Dealer of the Year Awards, Mark of Excellence Awards, and more — all thanks to their focus on premier customer service and excellent employee relations.

“The success of Kia in greater Houston shows how the area has grown, along with the value of the franchise,” said James Masten, co-owner of Beck & Masten Auto Group. “With Kia, we saw an opportunity to invest in the brand and grow its footprint, for both new car sales and fixed operations. So, when it came time to sell it was incredibly important to find a buyer who could continue to invest in and nurture this emerging brand. This is why we turned to Kerrigan Advisors who has the experience and know-how, in both the Texas market and with Kia, to complete a transaction as important as this one.”

“It’s hard enough to sell a dealership that has a proven track record over decades of sales and service, but when a dealership is beginning to grow into its revenue potential like our Kia dealership, that’s even more complicated,” said John Beck, co-owner of Beck & Masten Auto Group. “Add to that the changing dynamics of the Texas automotive market — especially it’s incredible growth — and it was clear to us that Kerrigan Advisors was the only sell-side advisor with the expertise to make this transaction a success for all involved.”

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 (6th highest in the nation) and 41% increase in light vehicle registrations since 2001.

“It was a pleasure to represent John Beck and James Masten in this transaction. Just as they did with their large Buick GMC stores, they successfully built the Kia franchise in northwest Houston,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “This project underlines the tremendous strides that Kia has made with respect to product line, brand, and penetration of the American heartland. Kia is now squarely on the map as a desirable franchise throughout the United States.”

Kerrigan Advisors has sold seven 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 acquisition valuation analysis, creating value for their clients 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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