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High-Growth Online Used Auto Parts Company

Automotive

Client Number

66917

EBITDA

$7,600,000

Revenue

$21,000,000

Region

Southeastern U.S.

Contact Details

Ahmad Behjati

(203) 716-1185

abehjati@generational.com

Founded in 2015, this high-growth, high-margin Company specializes in sourcing and reselling used auto parts. With three retail and distribution centers in the Southeast, the Company caters to customers across the United States and internationally through its sophisticated website, featuring real-time inventory search capabilities across all locations. The Company sources parts by acquiring and dismantling vehicles at its locations and cataloging and coding each part before entering it into inventory. Inventory management and strict cost controls have allowed the Company to scale efficiently, with future margin improvements expected. The Company has expanded multiple times and plans to open a fourth warehouse and distribution center in 2023. Reinvestment in inventory has consistently scaled revenue growth, resulting in exceptional growth from $4.4M in 2019 to projected revenue of $21.0M in 2023. With a focus on providing exceptional customer service and quality products, this Company is poised for continued success in the used auto parts industry. INVESTMENT APPEAL: Exceptional Growth: Since 2019, the Company has experienced an exceptional, stable growth rate, with revenue growing at a 49.1% CAGR and EBITDA increasing by an incredible 125.8% annually through 2022. This growth rate results from management's execution of a simple formula for expansion. High-Margin Business: The business's scalable nature, combined with management's cost control, has expanded the EBITDA margin from 7.7% in 2019 to 26.8% in 2022 while scaling sales over 3x. Additional economies of scale are achievable in both the cost of sales and operating overhead as the company continues to expand. Expansion: Revenue growth directly correlates with the Company's inventory levels. Management continually reinvests in new and varied inventory to increase vehicle model coverage, serve new customers, and predictably increase sales. As warehouse space is maxed out in existing locations, the Company expands to new strategic regional markets, allowing for more efficient shipping while growing capacity for inventory and the resulting sales. Sophisticated Digital Marketing: The Company leverages its first-rate web presence with a sophisticated digital marketing strategy, including SEO, paid advertising, cross-platform marketing, and omnichannel sales, to increase the breadth of exposure to customers. This approach has proven successful in generating consistent, high-quality leads and driving sales growth.

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