Case Study 3

Complete due diligence for purchase of dealer group

Challenge

Represent buy-side investors in assessment of proposed valuation for 4-store dealership Group acquisition
  • Analyze dealership financial statements and other applicable documentation to objectively score historical business results and identify growth opportunities
  • Brands include: Genesis, Hyundai, Mazda, Subaru

Focus

Execute comprehensive due diligence of target store financial performance, operational efficiency, and sales effectiveness – as compared to peer brands/dealerships and NADA benchmarks

    Approach

    Provide client with financial and strategic metrics, analysis, and guidance required for successful transactions through detailed due diligence
    • Review Group and individual dealership annual financial statements, tax records, owners’ compensation, net adds and/or deductions, cost metrics, appraisals, off balance sheet income, operational processes, sales and F&I reports, etc.
    • Summarize findings in actionable analysis – including Income Statement, Balance Sheet, Expense Summary, EBITDA and overall valuation assessment

    Results

    Supported successful conclusion of $65M acquisition ($90M+ with real-estate)
    • Provided benchmark metrics across dealership departments per NADA data and peer statistics
    • Identified $6M in potential opportunities – possible through implementation of tactics ranging from effective management of front/back end profit per vehicle retailed to restructuring F&I contracts and participation structure
    SEE PREVIOUS CASE STUDY
    SEE NEXT CASE STUDY

    Let us know how we can help your business

    Contact Us