Scan Capital Pty Ltd AFSL 400964 and Scan Pty Ltd
Scancorp Queensland Office
Suite 22, Newstead Commercial Village
76 Doggett Street
Newstead QLD 4006
T 07 3902 2400 F 07 3399 4288

***SOLD***Leading National Automotive Franchise

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.

Investment Highlights:

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.

Overview

To register your interest, please contact Marcus Salouk of Scan Capital Pty Ltd AFSL 400964:
E: marcus.salouk@scancorp.com.au
T: +61 (0)400 183 234 | 0400 183 234

 

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