Former Toyota executive, Jack Hollis, recently joined Accrual Equity Partners (AEP) as a managing partner. In today’s episode of Inside Automotive, Hollis and AEP founders and managing partners, Brady Schmidt and Jacob Tilzer, outline how their multifaceted approach supports dealership growth, fixed operations, and market consolidation.
Hollis, after more than 30 years at Toyota, embraces a new role with AEP, a private equity firm focused on the automotive sector. He brings decades of automotive experience to a firm that blends deep industry knowledge with entrepreneurial drive. His transition from corporate leadership to entrepreneurship aligns with AEP’s mission to elevate dealership operations and support dealer success through hands-on investment and advisory services.
AEP’s scope extends beyond dealership acquisitions, encompassing collision centers, aftermarket repair businesses, and distribution of automotive products and fluids. The partners’ combined backgrounds include dealership operations, mergers and acquisitions, and industry leadership.
"We touch a lot of different areas in the automotive space. We know it from a high-level view, a ground-floor view, from being inside the business, and from being outside the business. My whole career and where we're going with Accrual is embedded in and around automotive." — Jacob Tilzer
Fixed operations remain a core focus, recognized as a recession-resistant segment that demands more personalized customer relationships and technical expertise. The company aims to improve fixed ops performance by addressing technician shortages and optimizing service department profitability, viewing fixed ops leaders as critical to overall dealership success.
"We're very passionate about helping dealers grow, be successful in all the automotive ancillary businesses that surround new car dealers." — Brady Schmidt
In the dealership buy-sell market, AEP targets medium-sized dealer groups with 10 rooftops or fewer, emphasizing growth and technological adoption to keep pace with rapid advancements, particularly in artificial intelligence. Schmidt notes that dealers unwilling or unable to invest in new technology risk falling behind, while AEP supports both growth-oriented dealers and those planning an exit strategy.
The partners stress the importance of early engagement with dealers considering a sale, sometimes working with clients years in advance to enhance business profitability and legacy value. This approach maximizes the eventual sale price by improving financial performance and ensuring a smooth transition that benefits the dealer, buyer, and local community alike.
"How can we set up a situation where there's three wins? Unfortunately, in a buy-sell situation, oftentimes one feels like they won and somebody feels like they lost... It has to be a win-and-win, and the third win for the community, right?" — Jack Hollis
Hollis and the team see their role as extending beyond capital investment. They aim to create win-win-win outcomes, where dealers receive fair value, buyers acquire healthy businesses, and communities maintain continuity and support from longstanding dealership relationships. The team also highlights their commitment to social impact initiatives, such as training programs that place foster youth into automotive technician roles, reflecting their dedication to both business growth and community service.
Looking ahead, AEP will combine Hollis’s OEM expertise, Tilzer’s fixed ops and operational knowledge, and Schmidt’s M&A and dealer experience to offer a unique partnership that empowers dealers to optimize current operations, expand footprints, or execute well-planned exits.
Jack Hollis closes with a message of service and continuous improvement for dealers, encouraging a focus on giving back to customers and communities to sustain the automotive industry’s vital role in the economy. This philosophy underscores AEP’s vision for elevating dealerships in a changing market while maintaining the core values that have long defined success in the sector.
