Patnoe Family Continues Generations of Growth with Industry Acquisitions
Creating a company with staying power, especially for four generations, is not possible without both consistency and chasing growth. In the last decade, Liberty Superstores has not only stayed, but more than doubled its presence in Rapid City and the region.
The most recent series of expansions began in 2016. After acquiring their current Jeep/Chrysler store at the southwest corner of Omaha and Cambell Streets in 1999, the Patnoes had their eyes on the lot across the street. They spoke frequently with Eddie Rypkema, waiting for when he would be ready to sell Dodgetown.
The opportunity for the Hyundai property (404 Cambell Street) across the way presented itself, and knowing Eddie was not ready, Liberty took steps to acquire the building. Low-and-behold, about two months later, Eddie had called to say “he was ready.”
“Timing is never great with how these things come together,” laughed Max Patnoe, fourth-generation owner and General Manager of Liberty Superstores.
Not wanting to give up the opportunity, they looked into what it would take to get both.
“It requires good relationships,” he added. “You need a whole team from lenders to accountants and attorneys. We thought we couldn’t probably do both at the same time, but we had some lenders that stepped up and helped us make it happen.”
Expanding, acquiring, and buying a business is one thing. But there is also an art, or magic, to taking care of the people in those businesses, too. Something that Liberty knows well as evidenced by the number of people with more than 20 years of tenure.
Much of the success with the recent expansions has been finding businesses that already align with the same shared values. “It’s like merging two families,” said Max. “Dodgetown had been in the Rypkema family more than 50 years and Hersruds had the Chevy store for 105 years. So I think when they were ready to sell, they wanted to make sure all their employees and customers have that same family atmosphere, same family culture. At the end of the day it’s treating customers well and taking care of them.”
This is also why, when they launch the new store, Max said they put a lot of focus on integrating the two teams together – moving some existing Liberty team members to the new store with existing staff so they can learn from one another.
And while for many, these deals look like they happened overnight, it’s anything but. “It requires a lot of patience,” Max advises anyone looking to buy another business. “It’s months of conversations, and meetings before anything ever even gets on paper. And then it’s attorneys hashing out the details.”
But, Max would also remind people, it’s more than a price tag and tangible business. “There are all the intangibles, and emotional stuff that go with it. From the buyer’s perspective, taking on a lot more responsibility and debt, a lot of times. From the seller’s perspective, it seems like whether it’s going into retirement or their identity, there’s a lot more emotion that plays into it other than the numbers.”
With three expansions under his belt – Hyundai, Dodgetown, and Hersruds of Sturgis – it’s safe to say Max is as prepared as he can be for the latest addition. In June 2024 they will be opening Liberty Pre-Owned, a used car store on the northeast corner of Omaha and Cambell Streets, where Kopren Motors once stood.
And whether you’re walking into this new store, or one of the other five, there is something you can always expect: Simple, worry-free car buying. “We try to make that happen at any of our stores; simply and easy to do business,” Max explained. “That’s our high-level formula: get really good people, have a great selection so that when people come into any of our stores, they have a very easy and simple transaction.”
Who’s to say what’s to come with the next generation or business expansion? One thing is certain: Max Patnoe is doing what he can to be ‘your dealer, for the people.’
This story was originally published in the June 2024 issue of Elevate Magazine.
