Despite inventory shortages and supply chain concerns, many car dealers are experiencing record profitability and capitalizing on expansion opportunities. In 2021, when we spoke to Brett Morgan, the CEO of Morgan Automotive Group, his group was ranked number 11 on The Top 150 Dealership Groups in the US. by Automotive News. But after some more acquisitions and retailing over 60,000 new vehicles last year, the group moved to the number 8 spot.
Today, Brett Morgan joins Inside Automotive again to discuss his bullish acquisition strategy. In May of this year, Morgan Automotive purchased three additional dealerships in Florida. The group now owns 56 dealerships representing 30 brands.
Growth is part of Morgan Automotive’s DNA, and the current M&A environment presents opportunities to expand. Acquisitions after time are kind of like children, Morgan says. Some are doing what you think they should be, and others are not.
So, what’s the endgame for the dealer group?
Morgan would like to become the largest independent auto retailer in the U.S. Cracking the top 10 in Automotive News‘ annual list of 150 dealership groups was a significant milestone for the company.
When Morgan and his team started the business in 2003, the group spent around ten years completing one acquisition per year. This was a good pace; however, the last six years have been different.
“It’s all about our team. It’s two-fold. We’ve got great operators here at Morgan, and we feel like we know what to do,” says Morgan. “But it’s also about handling the administrative side of the acquisitions. I think we’ve got a great reputation. We’ve never re-traded one on the way in, and we’ve never lost one at the closing table. We’re good stewards of some of these legacy businesses. We feel that’s really important.”
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