UNDER OFFER Tire And Wheel Service Supply Distributor For Sale

Description

Specialized B2B Tire Service Supply Distributor OpportunityA rare opportunity to acquire a specialized B2B distributor of tire repair materials, tire pressure monitoring systems (TPMS), wheel service equipment, and automotive shop supplies serving an isolated island market of approximately 870,000 people.The company operates as the sole specialized distributor of its kind in the territory, supplying over 250 active accounts across tire shops, national chains, auto dealerships, independent service centers, fleet operators, and government agencies.Revenue has exceeded $1M annually for five consecutive years, with consistent 36% gross margins and net margins of 19-25%. The top customer represents only 6.9% of revenue, with the top ten customers accounting for 38%, reflecting a diversified customer base built through over four decades of relationships.Key Investment Highlights:Over 40 years of operating history. Founded in 1986 and continuously operated through multiple economic cycles.Geographic moat due to island isolation, freight costs, and logistical barriers to mainland competition.Recurring-revenue model supported by high-frequency consumables and operational necessities.Distributor partner with Canada’s largest tire-and-wheel-service supply network, including 50+ brand partners, 10,000+ SKUs, training, and e-commerce tools.Distributorship transferable subject to approval.250+ active accounts with no single customer representing more than 7% of revenue.Lean operations with no commercial lease, minimal capital requirements, and a two-person team.Priced at 0.88x revenue and 3.39x SDE.Year-1 DSCR of 1.71x and 17.6% cash-on-cash return based on a 30% down payment assumption.Operations & Business Model:The business operates through a mobile, route-based distribution model. Products are sourced through a national supply network and 50+ brand partners, stored at the owner’s home base, and delivered using a custom-fitted 2019 cargo van.Customers place orders through route visits or by phone, with customer acquisition primarily driven by route coverage and referrals.Revenue follows a predictable seasonal pattern connected to BC winter tire regulations, with peak periods occurring during April-May and October-November changeovers. Off-peak revenue is supported by repairs, equipment sales, and shop-supply restocking.Ideal Buyer:Owner-operator seeking a turnkey cash-flowing business.Regional distributor pursuing a tuck-in acquisition.Search fund or individual buyer seeking a stable recurring-revenue B2B business with geographic protection and growth opportunities.