Equity Raise: Service Provider to Wholesale Auto-Auctions
I’m under LOI to acquire a company headquartered in the Southeast that handles vehicle logistics for the wholesale auto industry. It does about $40M in revenue with more than $4M in adjusted EBITDA, and I’m raising $4M of equity to close. The company specializes in drive-away, lot-staffing, inspection, and reconditioning services, all performed at the customer's sites under MSAs that renew automatically. It's asset-light, with virtually no fleet - just labor. I particularly like that the current AI wave only supports this industry; these cars require humans to drive and detail them. There’s real room to grow. Newly signed accounts are still ramping up, industry volumes are expected to rise, and the operators have already identified 13 add-on targets. The sellers are taking nearly half of the purchase price as a combination of note, earn-out, and rolled equity, and their roll sits behind our new equity. All of the founders and management are staying on. Multiple credit funds provided debt terms which include a preferred equity piece. Your equity earns an 8% preferred return, and I’m investing alongside you. I’m an experienced independent sponsor with several closed deals of this size. Feel free to share your email under this post and I’ll reach out with the teaser and NDA.