UNDER OFFER Tire And Wheel Service Supply Distributor For Sale

Description

Business type: specialized B2B automotive service supply distributor

Established: 1986

Trading history: more than 40 years

Current status: established operating business

Operating model: mobile route-based distribution

Market type: isolated island territory

Territory population: approximately 870,000

Financial information

Annual revenue: more than $1 million

Revenue history: more than $1 million annually for five consecutive years

Gross margin: approximately 36%

Net margin: approximately 19% to 25%

Revenue valuation multiple: approximately 0.88 times

SDE valuation multiple: approximately 3.39 times

Projected year-one debt service coverage: 1.71 times

Projected cash-on-cash return: approximately 17.6%

Return assumption: 30% down payment under the stated base case

Products

• Tire repair materials
• Tire pressure monitoring system components
• Wheel service equipment
• Wheel weights
• Patches
• Cements
• Valves
• Automotive shop supplies

Customers

Active customer accounts: more than 250

• Tire shops
• National chains
• Auto dealerships
• Independent service centres
• Fleet operators
• Government agencies

Largest customer share: 6.9% of revenue

Top 10 customer share: 38% of revenue

Customer concentration: diversified

Customer relationships: long-term

Revenue model

Recurring revenue: supported by frequently reordered consumables

Peak-season revenue share: approximately 60% to 70% of annual sales

Primary peak period: April to May

Second peak period: October to November

Seasonality driver: British Columbia winter tire regulations

Off-peak revenue: repairs, equipment sales and shop supply restocking

Supplier network

National distribution platform access: established

Brand partners available through the platform: more than 50

Available SKUs: approximately 10,000

Supplier training resources: available

E-commerce tools: available through the distribution platform

Distributorship transfer: subject to approval

Operations

Operating base: home-based

Commercial lease: not required

Team size: 2 people

Capital expenditure requirements: stated as minimal

Customer ordering: primarily in-person route visits and telephone

Customer acquisition: primarily service coverage and referrals

Advertising reliance: minimal

Digital marketing reliance: minimal

Delivery frequency: daily

Assets

Delivery vehicle: 2019 cargo van

Vehicle configuration: custom-fitted for distribution operations

Market position

Specialized direct competition in the territory: none stated

Geographic barrier: island logistics

Mainland competitive constraint: freight costs and ferry delays

Same-day mainland distribution: stated as impractical

Expansion options

• Increase digital marketing
• Add online ordering
• Expand equipment sales
• Increase route coverage
• Add customer accounts
• Expand regional distribution in British Columbia

Potential buyers

• Owner-operators
• Regional distributors
• Automotive supply businesses
• Search fund buyers
• Individual acquisition entrepreneurs

Field-based customer engagement experience: recommended