Selling a business you built from the ground up comes with a lot of worries. While securing financial success is often thought of as the number one goal, it’s not always the only consideration. For Marsh Automotive Group (Marsh), a long-time player in Michigan’s automotive industry, those concerns included leaving behind a legacy long after they had sold the business that put their employees, community, and customers first.
With these goals in mind, Marsh enlisted FOCUS Investment Banking in 2023 to identify and facilitate a deal that was about more than the bottom line. Owned and operated by three brothers (Bill Jr., Mike and Jamie ), Marsh believed a successful M&A journey should go beyond finding a way to exit and monetize their business. The family wanted to offer employees and their community a continued path for growth and future success. Ultimately, this came down to finding the buyer that aligned with their organization’s culture — Serra Automotive Group (Serra).
Leaving behind a legacy
Founded in 1982 by Bill Marsh (father to the three brothers), Marsh Automotive Group has become an institution in northwest Michigan. What started as one location in Traverse City, MI, has grown into eight new automotive franchises and several ancillary businesses, including a collision center, an independent auto service center, a proprietary brand used car center, and a used vehicle reconditioning and detail center, with annual revenues of nearly $270 million. Thanks to this success, the Marsh brothers and their families have been able to take on an active and vibrant roles in the Traverse City community including working on behalf of the local community college.
In addition, the brothers continue to own and operate a business within the region and are likely to have more business and philanthropic interests in the region. So while they were ready to sell the automotive group, keeping strong ties and trust within the community was vital.
The brothers knew they couldn’t sell the company to just anybody. Selling the automotive group would not only be impactful on the local economy but would shape the legacy the Marsh family left behind. Introduced by Blueprint Partners, an investment advisory firm in Traverse City, Marsh chose FOCUS to find the best buyer due to their expertise in the automotive sector and their track record of successful transactions.
“Selecting the right partners is essential in navigating the intricate landscape of M&A,” said Jamie Marsh, co-owner of the Marsh Automotive Group, also adding the importance of adaptability and perseverance for entrepreneurs and business owners looking to sell or acquire another company.
Aligning business culture and goals
Understanding that the car dealership community is small, and so is Traverse City, Marsh wanted to keep outreach limited to a smaller number of potential acquirers that they believed fit with their standards and had the financial wherewithal to deliver an attractive price for the business. While often during an M&A deal, your investment banker will approach over a hundred companies on your behalf, FOCUS understood Marsh’s goals and negotiated strictly with qualified interested parties to structure a deal that was beneficial for everyone.
“It’s not always just about getting the top final dollar; it’s about getting the right fit so you can leave the legacy you have built in place after the sale,” said Rick Thomas, CEO, FOCUS Investment Banking.
In the end, Marsh found that fit in Serra, another family-owned business. Operated by a father and son team, Serra Automotive is a leader in the automotive community, ranking 12th on Automotive News Top 150 Auto Dealers in the U.S., with revenue of more than $3.4 billion in 2022. Serra Automotive was founded in 1973 and operates in seven states and employs over 3,000 people. The network includes 61 dealerships, 86 automotive franchises, and 27 brands.
Also a Michigan-based company, Serra shared with Marsh a similar value system in which employees come first. With a strong commitment to their employees and communities, the Marsh family recognized that same spirit in Serra’s culture and how they do business.
This connection between Marsh and Serra, facilitated by FOCUS, was instrumental in achieving the best possible outcome. “When companies merge or acquire one another, it’s not just about combining financials and operations—culture and philosophy play a crucial role, too,” said Thomas. “Serra and Marsh were aligned in this way, and it made for a successful transaction for all involved.”
Read about the transaction here.
