Family Sells Texas Toyota Stores
Broker Kerrigan Advisors says 93% of respondents to its 2023 Dealer Survey said they expect the Toyota franchise value to increase or stay the same next year.
Two Texas Toyota dealerships recently sold after more than 50 years of family ownership.
Sell-side firm Kerrigan Advisors represented the Toomeys in the sale of Alamo Toyota in San Antonio to Shottenkirk Auto Group and Tejas Toyota in Houston to Vaughan Automotive.
“My family is proud of our legacy of successfully representing Toyota in the great state of Texas for over five decades,” said John Toomey, who co-owned the stores. “We are incredibly grateful for the years of loyalty and support we’ve received from the Houston and San Antonio communities, as well as our employees and our customers. While the time was right for our family to sell our stores, it was certainly a difficult decision.”
Kerrigan Advisors, which said it’s represented the sale of 17 Texas-based franchises in the past 12 months, said the state is the largest Southern auto retail market and that Toyota is the top-selling brand in Houston and San Antonio. It said the Texas’ high sales per rooftop helps make it the second most requested state by dealership buyers.
“The Toomey family owned some of the most valuable dealerships in Houston and San Antonio and we were honored to be chosen to work with them to ensure their transaction was a success,” said firm founder and Managing Director Erin Kerrigan.
The firm said Toyota franchises are highly sought-after due to their sales and fixed operations volume, and profitability. It said 93% of respondents to its 2023 Dealer Survey said they expect the value of the Toyota franchise to increase or remain the same next year, the highest in the survey for the fifth consecutive year. Toyota is top-ranked among brands requested by buyers in Kerrigan Advisors’ national Buyer Database.
“As identified in Kerrigan Advisors’ 2023 Annual Blue Sky Report, while valuations are trending down for most franchises, import and luxury franchises in top growth markets are the exception,” said firm founder and Managing Director Ryan Kerrigan. “They continue to command strong valuations, in part because many are retaining pandemic-level earnings because of the growth dynamics in their markets.”