Presidio also joined with automotive-focused venture capital company Fraser McCombs Capital of Boulder, Colo., to create Next Auto Capital. Next Auto is an investment vehicle that will focus on acquiring a controlling interest in companies that serve auto retail and the consumer mobility space, said Cobb and Chase Fraser, managing partner of Fraser McCombs.
Fraser said Next Auto is funded by automotive dealerships and others in the auto industry and will invest in dealership vendors, aftermarket companies and collision-related businesses. He expects Next Auto Capital to complete its first transaction this year.
Several companies expanded geographically last year, such as Tim Lamb Group, a buy-sell company in Columbus, Ohio. The group expanded into Canada in 2019 with offices in Toronto and Edmonton, Alberta, and is looking to add locations in British Columbia and Quebec as more dealership transactions happen across the U.S.-Canada border.
Tim Lamb Group has eight locations in the U.S., with a ninth, in Arizona, set to open in the coming weeks. The expansion is happening as deal pace heats up, President Tim Lamb said. The group closed 10 deals in the first quarter of 2020 and is on pace to close 25 in the first half.
"This is the most activity we've ever seen," he said. It "will be a record year for us."
Kerrigan Advisors, an Irvine, Calif., sell-side company that tracks U.S. dealership buy-sell activity, said 2019 was the market's second-most active year of the past five years with 233 completed transactions. Transactions can include single-store and multi-store deals. The company expanded in 2018, adding Gabe Robleto as vice president and launching an office in northern Virginia. Kerrigan Advisors also launched a capital-raising service in 2018.
Dave Cantin Group, a buy-sell company that launched in 2018, now has five offices nationally, a dozen executives, 50-plus contractors and three independent businesses under its umbrella, CEO Dave Cantin said. It added DCG Capital in October and launched DCG Consulting in January. They joined DCG Acquisitions, its merger-and-acquisition arm.