Highlights of SEMA/AAPEX/Global Tire Expo Week

By Michael J. McGregorPublished On: October 7, 2024

If you count what used to be the NTDRA and is now known as TIA (Tire Industry Association), and what was formerly the APAA and is now called AAIA, I’ve been coming to the industry’s leading convention in Las Vegas off and on since the early 1980’s. Lately, I’ve made it here every year for the last seven years. It’s my longest streak. I’ve attended as a buyer of auto parts and accessories for my own stores, as a representative of a tire company selling its products, and most recently as a dealmaker trying to get in the middle of deals.

What we do. SEMA is a great place for dealmakers to network with auto-related companies that are looking to grow through acquisition or sell when the time is right. Same for the people and companies looking to finance those deals. My whole team comes out for the week, whether we focus on tires, auto parts and accessories, collision repair, manufacturers, retailers and wholesalers. It’s the culmination and a focus of a lot of the outbound business development that we do during the year. As the year goes on, it’s always appropriate to say, “Hey, let’s meet at SEMA this year.”

Last year, we were engaged on site by one tire dealer and hired by an ecommerce company for an acquisition search, so the investment of time and money pays off. We set up meetings and meet for drinks and meals. Larger investment banks rent out restaurants for invitation-only functions for their clients and prospects. I don’t know what goes on in those because I haven’t crashed one yet, but I’m imagining free food and drink and listening to a firm’s pitch.

Where we stay. This depends on whether you are paying your own way and whether you are planning on walking the show. I know various tire organizations and buying groups have their own meetings at certain hotels that are often comped for free. I’m always surprised by people who come out and never walk the show itself. They stay in the hotels and have meetings day and night but never make it to the Convention Center. We have plenty of meetings, but we also walk the show and see what’s new. For these reasons, we stay at Wynns, Encore, and Resorts World that are close enough to the Las Vegas Convention Center; or the Venetian and Palazzo which are connected to the Sands Expo that houses AAPEX.

Where we eat and drink. When we are meeting people, we tend to arrange meetings at the bars and restaurants at Wynn or Resorts World. Many tire dealers hang out at Wynn for some reason. At Wynn, the Overlook Lounge, Lobby bar and Tower Suites bar are great meeting places. I have fond memories of all these bars because all have resulted in new clients and new business for us.

It’s been said that you can’t go wrong picking a restaurant at Vegas, but my favorite is Nobu at Caesars Palace. Try the Black Cod Miso.

What else to do. If you can make it out on Monday, TIA’s pre-show Annual Membership Meeting and Cocktail Reception takes place on Monday evening, November 4, at Planet Hollywood Resort & Casino. The cocktail reception features an open bar and carving/food stations and is usually followed by an awards show and ceremony. It’s a chance to meet new people and say hello to old friends in the tire and service business.

Attendance would be better if some tire companies and wholesale groups didn’t have competing functions that same Monday evening every year. I’d encourage all tire companies and wholesale groups to pick another night and show physical support to the whole industry by showing up at this event with their customers. Attendance is complimentary, but tickets must be reserved online at https://www.tireindustry.org/events/gte-2024/ in advance.

If you ever get the chance, try scoring an invitation to Gabelli Funds’ 48th Annual Automotive Symposium on November 4th and 5th, 2024 at The Encore. The focus here is on publicly traded companies. Here’s their blurb: “Presenting attendees, which include original equipment suppliers, automotive retailers, aftermarket service participants and next-gen tech companies driving vehicle electrification will provide a “cradle to grave” look at the automotive ecosystem and help investors understand “What’s Next?” for the automotive space.”

Past presenters have included Dana Corporation, Penske, Genuine Parts, O’Reilly Auto Parts, Monro, Inc. and AutoZone. I attend to find out what these companies and car dealers like Auto Nation and Sonic Automotive have planned for the future.

Michael McGregor, a FOCUS Managing Director, has over 15 years of experience advising on business transfers, capital raises, and management buyouts for middle market businesses. Prior to Joining FOCUS, Mr. McGregor was a Managing Director at Robertson & Foley, a regional Investment Bank based in Charlotte, NC. He led the firm’s entry into human services – a category that comprises Medicaid-reliant services such as foster care, mental health and MR/DD services for society’s most vulnerable populations. At Robertson & Foley, he successfully led recapitalizations of family-owned businesses to private equity ownership; steered several cycle-sensitive businesses through the 363 bankruptcy process; executed multiple buy side acquisition search engagements; and assisted a diverse number of sellers of privately held businesses. Mr. McGregor started his career in finance as a registered representative at Paine, Webber Jackson & Curtis and then took a 20-year detour into the automotive aftermarket. He joined the Firestone Tire & Rubber Company (later acquired by Bridgestone Tire) where he worked in a variety of positions including financial analysis, automotive product marketing, retail store management, regional marketing management for 350 western region stores, market research, database marketing management and strategic project management. Mr. McGregor ran tire store groups in Los Angeles and in Northern California for Bridgestone. Both were turnaround situations and Mr. McGregor broke them even within short order. He specialized in finding ways to improve gross profit margins while growing car count, unit sales and service sales. Mr. McGregor has been a founder or co-founder of 3 automotive-related businesses: a direct advertising & marketing firm in Northern California that specializes in promoting auto service; a retail chain of automotive accessories in Southern California and an innovative auto service start-up. As the self-billed “father of managed car care” he founded and launched AutoPact Car Service, the nation’s first “HMO for Car Care”. He sold the operations to AAA Carolinas in 2001. Mr. McGregor earned his Bachelor of Science degree in Business Administration /Finance from California State University at Long Beach. He received his M.B.A. from The University of Pennsylvania’s Wharton School of Business.