Consolidating the Fragmented Auto Auction Industry

Industry

Financial Service

Company Type

Auto Acquisition

Location

USA

Size

$250 million

Investment Type

Equity, Debt

For important risk and disclaimer information, Click Here.

Click to view Investor Presentation and/or Schedule Management Call.

To Access DataRoom, click Download NDA.

Helping Great Companies Grow

Overview

Stonehenge Auto Auction Group is seeking $250 million of debt and/or equity to execute a roll-up of auto auction operators. The first acquisition is under LOI – $21.6 million

 

  • Seasoned automobile finance industry executives
  • Plan to acquire approximately 20 to 25 locations over two to three years
  • Auction operators take little if no credit risk – charge for all services provided
  • The National Auto Auction Association members sell nearly 10 million vehicles per year
  • Strategy takes advantage of the impending wave of owner operator retirements that are expected in the next few years
Helping Great Companies Grow

Opportunity

  • The National Auto Auction Association estimates that members sell nearly 10 million vehicles each year
  • The auto auction business has been economic cycle-resistant; the Internet has enhanced the overall industry
  • Auction operators take little if no credit risk
    • charge for all services provided
    • even a vehicle not sold generates income
  • Auction operator marketplace remains fragmented and inefficient, providing a deep pipeline of available and attractive acquisition candidates
Helping Great Companies Grow

Solution/Strategy

  • Take advantage of the impending wave of owner operator retirements that are expected in the next few years
  • Target the best independent auto auction operators in the key markets
  • Create transactional revenue without large credit exposure
  • Improve operations and efficiencies
    • cut redundant functions, operations and costs
    • extend floor planning to dealership clients
    • increase frequency of auctions
    • increase sales closing ratio
    • offer insurance products to buyers and sellers
Helping Great Companies Grow

Management

Scott Freidman – CEO and Investor Relations

Founders of 1803 Capital Holdings LLC, a finance company that lends to subprime consumers in the automotive space. Has worked in the structured finance and securitization industry. US Securitization departments of Société Générale and Fortis – oversaw and structured debt facility for consumer finance clients with a focus on consumer loans in the sub-prime auto and credit card sectors. Held several positions at Société Générale, first as primary architect of the bank’s securitization group. Won Euromoney 2004 Structured Finance deal of the year. Managing Director of the Financial Institution Group. Assumed a similar structured finance role at Fortis as US ABS origination and distribution. Director at Standard & Poor’s in the Structured Finance department – ran the European Commercial Paper conduit business and developed rating criteria for various asset classes.  BS in Accountancy. MBA in International Business and Finance from New York University.

Daniel E. Powell, CPA – EVP and CFO

Over 25 years of executive management experience in the automotive industry with a proven track record of managing multiple automobile dealerships and identifying and implementing key business initiatives to improve results. Began professional career at Deloitte, one of the leading professional services firms in audit, tax, consulting and financial advisory services. Joined the Thomason Auto Group/Asbury Automotive Group as CFO for the West Coast Operations. Member of the Asbury Automotive Best Practices Team that undertook corporate initiatives. Formed a business advisory firm which included ownership and operation of a used vehicle dealership. Extensive background managing ancillary business units such as in-house financing companies, reinsurance companies, and service and repair centers.

0 Comments

Leave a reply

Your email address will not be published. Required fields are marked *

*

CONTACT US

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

Sending

Log in with your credentials

Forgot your details?