The flurry of acquisitions this 12 months follows McGovern Automotive last October getting a scarce Ferrari-Maserati dealership, getting Ferrari-Maserati Extended Island in Plainview, N.Y., from Expertise Automobile Team.
With all its development, McGovern stated his group is on keep track of to make $1.8 billion in once-a-year income for 2022 and to sell much more than 27,000 new and made use of cars blended this yr.
McGovern, 52, said that soon after graduating university, he worked for an accounting organization that specialised in car dealership get the job done. He explained he ultimately went to perform for a dealership shopper that was sold to Group 1 Automotive Inc. in 2000. With Group 1, McGovern said he worked as the Northeast area CFO. He still left Group 1 and in 2007 co-established Key Motor with David Rosenberg and David Abrams of Abrams Money.
McGovern mentioned he still left Prime Motor in early 2016, ahead of Key in 2017 blended with GPB Funds Holdings’ Capstone Automotive Group to make Prime Automotive Group.
On his own, McGovern explained he bought his to start with keep in September 2016, a Chrysler-Dodge-Jeep-Ram store in Newton, Mass., with some monetary assistance from his sister.
“It was a enjoyment to shuffle across the avenue and get rolling on my have with a terrific, great management workforce,” McGovern stated. “So we rapidly bought 4 dealerships in quarter four of 2016: an additional Hyundai retailer, a Honda retail store, and I was ready to invest in our Toyota shop in December of 2016. And that combination of stores has fueled my progress in conditions of extreme profitability proper from the get-go.”
In mid-2018, McGovern reported he included his to start with luxury dealerships, acquiring Audi and BMW in Shrewsbury, Mass., and in June 2020 he added his very first Porsche dealership, also on Very long Island.
“It was March of 2020, and I set it underneath arrangement,” he recalled. “I was sending out the $500,000 deposit and my CFO stated, ‘What? Are you mad? You can find a pandemic going on.’ And I was like, I am not outrageous. And I think on the other facet of this, it’s going to be truly, seriously superior.”
The Lundgren store allows McGovern have some efficiencies in western Massachusetts, he reported, and follows the strategic acquisition this yr of Dillon Chevrolet to support with the group’s new municipal division. McGovern claimed he aims to offer municipal vehicles these types of as law enforcement and maintenance autos “to cities and towns all around Massachusetts, Rhode Island, New Hampshire and as effectively as quite possibly the condition police in Massachusetts.”
With the Monthly bill Dube Hyundai acquisition, Scott Dube joined McGovern Automotive as vice president of govt and business relations. Dube, who also will continue on to serve on the board of directors for the Nationwide Auto Sellers Association, claimed he retained a minority interest in the dealership, but he did not disclose it.
Dube informed Automotive Information that he did not want to sell his keep, but found that “timing’s every thing.”
“Desire charges are swiftly increasing, gas prices are swiftly raising, inflation is promptly raising,” he stated, introducing that people changes put force on the household organization.
He stated it also was a superior time for his loved ones to limit danger exposure specified that “there continues to be uncertainty all-around inventory.”
He claimed that although minimal inventory for new cars has helped dealers’ profitability, it is really unclear how very long that will past.
But McGovern sees at minimum a number of excellent yrs in advance for car vendors.
“We’re going to stay fairly intense,” he reported of specials that “make perception. I imagine there’s a strong 1 to two yrs at minimum of really fantastic automotive times. So I think it can make feeling to be bullish even now.”
Woody Woodward and Brian Brown of DCG Acquisitions, a Dave Cantin Team corporation, managed the McGovern-Lundgren transaction.