No. 1 Ford dealership, Bill Brown Ford, sold to Penske Automotive

Author

Colin Velez
July 17, 2024

Roger Penske, Penske Automotive Group CEO

Penske Automotive Group has purchased the world’s top-selling Ford dealership, Bill Brown Ford of Livonia, Michigan, marking one of the year’s biggest retail auto acquisitions.

Why this matters: The dealership mergers-and-acquisitions (M&A) market has been extremely busy in 2024, with a record number of retailers exiting the car business in Q1. With store values still well above pre-pandemic norms and a large pool of competing buyers, many dealers are feeling pressured to leave before conditions change.

Deal snapshot:

  • Bill Brown Ford has been one of the brand’s best-selling dealerships for years. Founded in 1940, the storefront has earned Ford’s Triple Crown Award and President’s Award for seven and 17 consecutive years, respectively.

  • The family-owned dealership was run by siblings Tom Brown and Ruth Ann Brown, who were guided through the sales process by M&A advisory and investment banker The Presidio Group. Their father, Ed Brown, oversaw the storefront for 50 years but passed away in early 2023.

  • Penske Automotive is one of the U.S.’s biggest dealership groups and estimates the acquisition will bring in an additional $550 million in annual revenue. In Q1, the company reported a steep drop-off in profits, despite marginal increases in sales.

  • Bill Brown Ford will continue to operate under the same name, despite the new ownership.

“After nearly a century in the greater Detroit community, it was essential to find a buyer who values the culture we’ve created at Bill Brown Ford and would carry on our family’s legacy as a top-notch employer and a trusted provider of vehicle sales and service to customers throughout Southeast Michigan. We found just that steward in Penske Automotive Group. We could not have done this without the Presidio team, which guided us through this entire process and exceeded our expectations.”

Tom Brown, Bill Brown Ford co-owner

Q1 was the dealership M&A market’s biggest first quarter in history, according to the Q1 Haig Report, in spite of declining store profits. While falling revenue has translated into lower blue-sky values, Haig reiterates that “The demand for dealerships, and therefore the prices buyers are willing to pay for dealerships, remains elevated” when compared to 2019.

Bottom line: This acquisition underlines the speed with which dealerships are selling in 2024, as even the most legendary franchise owners consider making their exit. As time goes on and profits continue to normalize, more historical storefronts are likely to follow suit.

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