By Alysha Webb, Editor and Publisher
John Jomehri and his wife Connie in one of their new dealerships (Photo courtesy of Mike Lamb, Daily Press)
John Jomehri had managed, and been part owner of, dealerships in Southern California for decades. He always envisioned owning his own store in the same area. He bought a group of stores in the California desert town of Barstow, however, and he couldn’t be happier.
“It is unbelievable,” Jomehri told Automotive Buy Sell Report. “I walked into a situation where I have four of the major manufacturers.”
The acquisition of Mojave Auto Group — formerly Soutar’s Auto Group — included Toyota, Nissan, Ford, and Chrysler Dodge Jeep Ram franchises as well as a NAPA Auto Parts store. Jomehri, who has long been a Honda man, was euphoric at the brands he now owns. Ford and Chrysler are doing very well, Nissan is a good brand, and “getting a Toyota store is next to impossible,” he said.
Jomehri didn’t know the multiples on his purchase.
“We made a deal on the entire package,” he said. “They had a figure they had in mind. I low-balled the heck out of them, and we met in the middle. My attitude was if I can get it at a very good price I will, if I can’t I will pass.”
He did most of the due diligence himself, said Jomehri, though “I did have my CPA and attorney doing what they do.” The lender’s accountants also reviewed the financial statements.
It helped that he and the Soutar family had become friends before the deal closed. “They were great people,” said Jomehri. “It was a very easy transaction.”
The Soutar family – a couple and their son and daughter – had been running the dealerships themselves and were ready to retire, said Jomehri. They had been in the business for 50 years.
They weren’t doing much advertising and sales had dropped to an average of 125 units a month at all four stores. Immediately after taking over ownership – just before the Labor Day holiday – Jomehri boosted advertising and created an internet department. That had an immediate impact. At the Toyota store, he sold all but 16 units, said Jomehri, and had to buy inventory from other Toyota stores in the area.
The manufacturer’s planning volume for the stores comes to more than 1,000 units annually, so Jomehri sees a lot of sales upside possibilities.
He already has contractors working on some upgrades to the facilities, but is holding off on major changes. Jomehri is talking with the city of Barstow about moving the stores to a location next to the freeway. If that comes through he will build new facilities.
Barstow is located in Central California’s Mojave Desert at the intersection of highways I15 and I40.
Still some Honda man in there
John Jomehri has worked as the general manager of Honda and Acura stores and has partnered in ownership of several Honda franchises. Like most dealers, however, he has always dreamed of owning his own store.
Given his background with Honda in the Los Angeles metroplex, he assumed it would be a Honda store in that area. But such buys are hard to land, especially for an individual. When a broker came to Jomehri with the Barstow deal, he jumped at the chance.
Multiple-brand deals can be tricky because all the manufacturers have to agree to the deal. Jomehri’s long-time experience in the dealership world likely helped and all were approved.
Funding came from his own savings as well as bank loans. “They checked my reputation and got to know me and saw the potential the stores had,” said Jomehri. “They took a chance.”
The buy sell agreement stipulated that Jomehri had to keep a certain number of the existing employees.” He kept them all. Some were moved to different positions. He aims to evaluate the staff after the stores are running on his systems and see who is succeeding, said Jomehri.
He did bring in two of his long-time associates as minority partners. One is now general sales manager for the Toyota and Chrysler Dodge Jeep Ram stores, the other for the Ford and Nissan stores.
If Jomehri’s vision is fulfilled there will soon be another general sales manager job to fill in Barstow. The nearest Honda store is 30 minutes away in Victorville. “If the city lets us move to the freeway, I’m going to have a conversation with Honda,” he said.
