Issue link: http://deals.uberflip.com/i/1530975
HIGH-GROWTH ONLINE USED AUTO PARTS COMPANY #66917 BUSINESS HIGHLIGHTS Founded in 2015, this high-growth, high-margin Company specializes in sourcing and reselling used auto parts. With three retail and distribu on centers in the Southeast, the Company caters to customers across the United States and interna onally through its sophis cated website, featuring real- me inventory search capabili es across all loca ons. The Company sources parts by acquiring and dismantling vehicles at its loca ons and cataloging and coding each part before entering it into inventory. Inventory management and strict cost controls have allowed the Company to scale efficiently, with future margin improvements expected. The Company has expanded mul ple mes and opened a fourth warehouse and distribu on center in 2023. Reinvestment in inventory has consistently scaled revenue growth, resul ng in excep onal growth from $4.4M in 2019 to $20.2M in 2023. With a focus on providing excep onal customer service and quality products, this Company is poised for con nued success in the used auto parts industry. Ahmad Behjati Managing Director - M&A E: abehja @genera onal.com D. 203-716-1185 M. 203-945-8919 INVESTMENT BANK OF THE YEAR 2016 - 2017 - 2018 DISCLAIMER: All informa on contained in this document has been provided by the subject company to Genera onal Equity and while believed to be correct has not been verified. Accordingly, Genera onal Equity makes no representa ons or warran es as to the accuracy and truthfulness of such informa on. The recipient hereof acknowledges that Genera onal Equity shall not be liable for any loss or injury suffered by said recipient in any way connected to the delivery by Genera- onal Equity of this document. At all mes Genera onal Equity and/or its affiliate network members are agents for the seller and not for the buyer. Generational Equity's fees are paid by the seller. REVENUE / EBITDA 2023 REVENUE INVESTMENT APPEAL a. Exceptional Growth: Since 2019, the Company has experienced an excep onal, stable growth rate, with revenue growing at a 46% CAGR annually through 2023. This growth results from management's execu on of a simple formula for expansion. b. High-Margin Business: The business's scalable nature, combined with management's cost control, has expanded the EBITDA margin from 7.7% in 2019 to 17.8% in 2023 while scaling sales nearly 5x. Addi onal economies of scale are achievable in both the cost of sales and opera ng overhead as the company con nues to expand. c. Expansion: Revenue growth directly correlates with the Company's inventory levels. Management con nually reinvests in new and varied inventory to increase vehicle model coverage, serve new customers, and predictably increase sales. As warehouse space is maxed out in exis ng loca ons, the Company expands to new strategic regional markets, allowing for more efficient shipping while growing capacity for inventory and the resul ng sales. d. Sophisticated Digital Marketing: The Company leverages its first-rate web presence with a sophis cated digital marke ng strategy, including SEO, paid adver sing, cross-pla orm marke ng, and omnichannel sales, to increase the breadth of exposure to customers. This approach has proven successful in genera ng consistent, high-quality leads and driving sales growth. Generational Equity 125 Park Avenue, 25th FL New York, NY 10017 T. 212-401-7961 $3.6M $4.0M $20.2M $22.0M 2024 REVENUE (Proj.) 2024 EBITDA (Proj) 2023 EBITDA SIGN NDA ► CUSTOMER MARKETS Retail 50% Commercial 50% FINANCIAL PERFORMANCE ($M) STAFF Sales 3 Shipping 9 Dismantlers 7 Inventory Techs 12 Stocking 6 Photo Techs 8 Auditors 2 Clerical & Accoun ng 1PT ACCOUNTS Total Accounts 10,000+ Ac ve 250 Repeat Business 25% CUSTOMER RATINGS (3 LOCATIONS) REVIEWS REVIEWS REVIEWS CUSTOMER MARKETS