Leading National Automotive Franchise - Under Management
Highly profitable. High level of recurring income. Strong barriers to entry. Exceptional growth. Established 15 years.
This business is a national franchise system within the automotive sector and is the largest provider of its services in Australia and one of the largest globally. The scope of investment/sale is the national franchisor and its 2 corporate stores.
As a national franchisor, more than 75% of profit derives from recurring revenues.
Established over 30 years, 15 years as a franchise system, this business has 18 stores across Australia, including 2 corporate stores and 16 franchised stores. The business is operated under management.
The business has achieved 17% compound annual revenue growth over the past 3 years and is on track for substantial growth in FY18. The Owners have a detailed plan to accelerate growth over the next 3 years.
Sustained financial performance:
• FY17 revenues of ~$3.3 million with EBITDA of ~$1.5 million
• FY18 EBITDA projection of ~$1.75 million
• 17% compound revenue growth over past 3 years
• Gross Profit margin ~60%, EBITDA margin ~43%
National scale and leading brand
• ~$18 million in store sales in FY17
• Largest chain in Australia and one of the largest globally
• Established over 30 years
• Highly diversified revenue streams
Compelling Franchise System
• Outstanding ROI to franchisees of circa 40%
• Highly profitable franchises with average GP ~75%
• Average sales per franchise store > $1 million
• Like-for-like store sales growth of ~14% in FY17
• Sophisticated store KPI reporting systems and franchisee support
Substantial Growth Potential
• Has achieved compound EBITDA growth of 48% p.a since FY15
• Detailed 3-year growth plan targets $3.4 million EBITDA and > $30 million in revenues
• Strong underlying customer demand with growth of 11% forecast over the next 5 years
A Compelling Opportunity
The Business has minimal dependence on the current Owners, is well positioned for further growth and offers an outstanding opportunity for investors, owner-operators, industry participants and corporates.
Scan Capital, AFSL 400964 is managing the sale process of this exceptional business via Expressions of Interest.
To register your interest, please contact Marcus Salouk of Scan Capital Pty Ltd AFSL 400964:
T: +61 (0)400 183 234 | 0400 183 234