The Lou Sobh Automotive Group in the sale of Kia of Cerrito
Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, has successfully represented Lou Sobh Automotive Group in the sale of its of Cerritos dealership in California to Trophy Automotive Dealer Group. This significant transaction marks Kerrigan Advisors’ 287th dealership sale and the 20th franchise transaction facilitated by the firm since 2015. Notably, of Cerritos ranks as the second highest-volume = dealership in the United States and is situated in the country’s largest auto mall, Cerritos Auto Square.
The Lou Sobh Automotive Group, owned by industry veterans Lou and Mike Sobh, has built an impressive portfolio of nine dealerships representing major automotive brands, including Honda, , Volkswagen, and Mazda, across Georgia, Florida, and Mississippi.
of Cerritos was their sole dealership in California, making this sale a strategically significant move for the group. The buyer, Trophy Automotive Dealer Group, is a Los Angeles-based automotive retail group founded in 2013, currently operating six award-winning dealerships throughout Southern California.
“We were honored to represent the Lou Sobh Automotive Group in the sale of of Cerritos, consistently one of the top five-volume dealerships in the U.S.,” said Ryan Kerrigan, Managing Director and Head of Real Estate Advisory at Kerrigan Advisors. “The Sobhs have been outstanding stewards of the brand in this vitally important Southern California market and continue their strong partnership with with multiple dealerships in the Southeast. It was a privilege to collaborate with the entire Sobh team in this significant transaction.”
The Sobh family has long been a key player in the auto dealership industry, with deep roots in the greater Atlanta area for over two decades. In 2010, recognizing the immense potential of the Los Angeles County car market—the largest in the United States—the Sobhs strategically expanded to the West Coast by acquiring of Cerritos.
Under their leadership, the dealership quickly grew into one of California’s top-performing stores. However, as the Sobh Automotive Group continued to expand in the Southeastern U.S., the family made the strategic decision to divest from of Cerritos to focus on strengthening their dealership network closer to home.
“The Sobh family’s long-standing commitment to the brand and loyal base of employees and customers, coupled with its incredibly strong performance, generated strong buyer interest, which in turn drove up the value of this franchise,” added Ryan Kerrigan. “Our entire team, which has deep knowledge and expertise in the Southern California market, worked closely with the Sobhs to pinpoint a buyer who not only demonstrated commitment to the community,
but also a deep understanding of the market and a track record of success with the brand. Trophy Automotive ticked all these boxes, and more, including offering opportunities for of Cerritos employees to grow within the region, as they also operate of Carson, of Downtown LA, and several other locations.”
Los Angeles is a powerhouse metropolitan area, home to 12.8 million residents and a thriving economy centered on industries such as transportation, technology, defense, and entertainment. The city boasts a strong presence of major employers, including Google, SNAP, Northrop Grumman, Walt Disney, and Live Nation. As one of the most competitive and high-performing markets in the country, Los Angeles hosts 15 dealerships and has seen the brand’s market share grow by an impressive 35% since 2018—the highest increase among all volume non-luxury import franchises.
“We knew choosing Kerrigan was the right decision, given their deep knowledge of the California dealer market and the brand, not to mention an advisory process that engaged every Kerrigan team member, from accountant to principal, focused on the success of our sale,” said Mike Sobh, Co-owner of Lou Sobh Automotive Group. “
As our team focuses its efforts on growing our footprint in the Southeast, it was so important to be able to depend on Kerrigan to identify a capable buyer—one that will continue to provide new career opportunities for our fantastic employees and further enhance the legacy of Kia of Cerritos. We extend our gratitude to all our employees and the community for the nearly 15 years of support.”
The Kia brand has been a standout performer in the automotive industry, drawing considerable interest from dealership buyers. The franchise’s appeal stems from its robust sales growth, high throughput per franchise, and a consistently award-winning product lineup.
These factors have contributed to increasing franchise valuations in recent years. In 2023, Kia recorded 782,000 vehicle sales—a remarkable 186% increase since 2008—while also doubling its non-luxury market share to over 6%.
Kia now ranks third among non-luxury brands in terms of annual sales per franchise, further solidifying its reputation as a top-tier investment for dealership groups. Additionally, Kia has demonstrated exceptional growth, with a 25% increase in sales per franchise since 2019. Notably, 86% of Kia dealers anticipate franchise values to either increase or remain stable in 2024.
Kia’s reputation for quality and value has also been reinforced through numerous industry accolades. In J.D. Power’s 2023 Automotive Performance, Execution and Layout (APEAL) Study, Kia secured the highest number of awards among all automakers. Furthermore, the Kia Telluride, Sportage, and Soul were named among the Best Cars for the Money in 2024, further enhancing the brand’s standing among consumers and industry experts alike.
“This transaction not only highlights the power of the Kia brand overall, and particularly in the buy/sell market, but also the strong interest today’s auto dealership buyers have in acquiring marquee, high-volume franchises like Kia of Cerritos,” said Erin Kerrigan, Founder & Managing Director of Kerrigan Advisors. “We are proud to have utilized our extensive sell-side expertise with Kia—completing our 20th Kia transaction since 2015. It was a privilege to assist the Sobh family and their executive team in achieving this significant milestone.”
Kerrigan Advisors has solidified its position as the leading advisory firm for high-value dealership transactions. By leveraging their in-depth industry expertise, the firm has consistently facilitated successful sales that maximize value for dealership owners while ensuring a seamless transition for employees and customers alike. With a track record of 287 dealership transactions and counting, Kerrigan Advisors continues to be the trusted partner for automotive retail groups navigating the ever-evolving landscape of dealership sales.
The sale of Kia of Cerritos is yet another testament to Kerrigan Advisors’ ability to align top-performing dealerships with strategic buyers, ultimately fostering continued growth and success for all parties involved. As the automotive industry continues to evolve, the importance of expert advisory services in facilitating complex transactions remains crucial. With its proven track record and commitment to excellence, Kerrigan Advisors is poised to remain at the forefront of dealership transactions for years to come.
