UNDER OFFER Tire And Wheel Service Supply Distributor For Sale

Description

Business type: B2B tire service supply distribution business

Current status: established operating business

Established: 1986

Trading history: more than 40 years

Operating model: mobile route-based distribution

Market type: isolated island territory

Market population: approximately 870,000

Products

• Tire repair materials
• Tire pressure monitoring systems
• Wheel service equipment
• Automotive shop supplies
• High-frequency consumables

Customers

Active accounts: more than 250

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

Top customer revenue concentration: 6.9%

Top 10 customer revenue concentration: 38%

Single-customer concentration above 7%: none stated

Customer relationships: established over multiple decades

Customer acquisition: primarily route coverage and referrals

Financial information

Annual revenue: more than $1 million

Revenue performance period: 5 consecutive years above $1 million annually

Gross margin: 36%

Net margin: 19% to 25%

Revenue multiple: 0.88x

SDE multiple: 3.39x

Year-1 DSCR: 1.71x

Cash-on-cash return: 17.6%

Cash-on-cash assumption: 30% down payment

Distribution network

National supply network relationship: established

Brand partners: more than 50

Available SKUs through supply network: more than 10,000

Training resources: available through supply network

E-commerce tools: available through supply network

Distributorship transfer: subject to approval

Operations

Commercial lease: none

Inventory storage: owner home base

Employees and working owner: 2-person team

Capital requirements: stated as minimal

Delivery model: mobile route service

Customer ordering channels: route visits and phone orders

Competition position: sole specialized distributor in the territory according to the source

Geographic barriers: island isolation, freight costs and mainland logistics

Assets

Delivery vehicle: custom-fitted 2019 cargo van

Seasonality

Revenue pattern: seasonal and recurring

Primary seasonal driver: BC winter tire regulations

Peak period: April to May

Peak period: October to November

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

Revenue model

Recurring revenue: supported by consumable products and operational necessities

Customer purchasing frequency: recurring

Expansion options

• Increase route coverage
• Add commercial accounts
• Increase equipment sales
• Expand shop-supply sales
• Increase e-commerce utilization
• Develop additional brand and product relationships

Potential buyers

• Owner-operators
• Regional distributors
• Strategic automotive supply buyers
• Search funds
• Individual acquisition entrepreneurs