Industry

Consumer/Retail

Company Type

Autos & Products

Size

$10 Million

Investment Type

Equity/Debt

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Beacon Auto Repair

Overview

Beacon Auto Repair is seeking $10 million in debt/equity to acquire and operate single-owned Meineke franchise auto repair shops

Beacon has acquired the exclusive rights to expand its Meineke franchise throughout key counties in the Chicagoland Area, Upper Indiana and Upper Illinois


Currently operates six auto repair stores in the Chicagoland area, and anticipates significant scale over time (up to 50+ shops)


Beacon is like no other franchisee, with the means to leverage valuable branding, training best practices, and advertising support available within the Meineke ecosystem


Team is composed of key value-add roles including recruiting, consolidated back office, operations, fleet sales/CRM and retail marketing to provide economies of scale

Beacon Auto Repair

Opportunity

The automotive repair and maintenance market continues to expand as vehicles are becoming more advanced and efficient


The average age of vehicles in the US has increased to 12.2 years, according to S&P Global Mobility


The average age of light vehicles in operation in the US rose to 12.2 years this year, according to new research from S&P Global Mobility, the fifth straight year it has risen


Automotive repair tends to remain steady through economic cycles – when the market is down people many hold onto their vehicles longer

Beacon Auto Repair

Buy the Shop Stategy

Beacon acquires only tier-1 shops doing $1+ million in revenue with strong profit margins, with owners and teams who are willing to stay, and where a portion of the purchase price is set aside to support ongoing shop performance


By acquiring existing shops where the full team intends to stay on, Beacon expects the facilities to cash flow immediately after close


Immediate focus on improving margins by eliminating office overhead and other redundant expense

Beacon Auto Repair

Buy the Team Strategy

Beacon finds talented and dedicated management teams who are seeking to make a move, structures a strong performance-based incentive program, and finds existing real estate for them to start their shop


Beacon pays upfront only for the real estate, with no acquisition cost associated with the operating business


Customers often follow shop techs/managers


By targeting high performing teams in local micro markets, Beacon expects to take share from existing shops

Beacon Auto Repair

Management

Michael-Bryant Hicks, CEO

Seasoned corporate executive – served as executive vice president and general counsel of four publicly traded companies


Mergers and acquisitions attorney by training. Spent 23 years negotiating the acquisition of large, multinational companies in the energy (oil, gas, electricity) and life sciences (pharmaceuticals, patient care, medical devices) spaces


Acquisitions expertise developed over decades – uniquely positioned to execute the auto repair center roll-up strategy. BA from the University of North Carolina at Chapel Hill and JD from Yale Law School

Richard Johnson, District Manager

Over 20 years of experience in the automotive repair industry


Started as a technician, moved to shop manager, and over the last decade was a regional manager of dozens of repair centers


Degree in automotive repair management from the Universal Technical Institute

Adeyemi Owolewa, VP, Strategy & Operations

Lead strategy officer for Beacon Auto Repair since the company’s start in March 2021


Was the Head of Corporate Strategy at pharmaceutical manufacturer Elanco Animal Health


Served as Senior Global Director of Strategy with Anheuser-Busch InBev


Also served as a business management consultant with The Boston Consulting Group. BA and MBA from Harvard University

Krystal Montemayor

Head of Administration

Leads all administrative functions of the Beacon Auto Repair corporate team, including human resources, recruiting, and state and local government compliance


Served as the director for Kiddie Academy, a franchised group of childcare centers


BA and MBA from Dominican University

Luis Ordenes

Property, Plant & Equipment

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Maintenance coordinator of Beacon Auto Repair’s real estate and equipment


Interacts with local and state governments to make sure the company complies with all regulations applicable to the business, especially environmental ordinances


20 years of experience managing auto wash and detailing operations


High level of skill ensuring that equipment failures don’t endanger people or put operations at risk

Beacon Auto Repair

Learn More About This Transaction: Beacon Auto Repair
Thank you for your interest in Beacon Auto Repair. Please fill out your information and we will contact you shortly with more information about Beacon Auto Repair.

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Hi. We're not around right now. But you can send us an email and we'll get back to you, asap.

Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

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