A Well-Performing Pre-Owned Car Sales Dealership

A premier used car dealer with branches in the Miami, Fort Lauderdale, Palm Beach, and Orlando metropolitan areas, the retiring owners are contemplating retirement, with management preferring to stay. The retiring owners may serve as advisers. in business since 1993 and has been consistently profitable from year one, even through the 2008-2009 Financial Crisis and the COVID-19 shutdown. • Future business growth is planned (a) organically (based upon growing the existing operations by expanding into new locations) and (b) by acquiring performing car dealers using the management’s existing connections. Real estate and proprietary dealer management software may be sold separately or leased to the buyer.

Between 2000 and 20024, the business grew its retained earnings at CAGR 18.6%. Its business model delivered a total return of 1,185x compared to a total return of 3.4x delivered by the S&P 500, a total return of 921x delivered by Group 1 Automotive, and a total return of 4.7x delivered by Carmax. The AICPA audit is current (pending conversion into PCAOB format if required).

The target market size is estimated to grow to ~$36 billion by 2028, growing at a CAGR of 4.14%. High interest rates have created a unique window of opportunity for investors to acquire pre-owned car dealers at a low P/E and exit at a higher P/E as the industry recovers with growing demand and future interest rate reductions. This is a great opportunity for private equity to buy out the retiring owners and take this business public.