Asking Price – $18,000,000
| TTM Revenue | $18,475,413 | Established | 2008 |
|---|---|---|---|
| TTM EBITDA | $5,628,656 | Location | Dallas Fort Worth Metroplex |
The company specializes in comprehensive investigations and recovery of assets tailored to car rental agencies, by locating and recovering vehicles that are overdue or have not been returned by renters. Unlike traditional repossession companies, the company employs a unique approach to vehicle retrieval. The company does not own repo trucks or maintain vehicle storage lots. Instead, once a vehicle is located, the
company arranges for it to be directly returned to a rental agency's location. The company also developed an intuitive and user-friendly website; it acts as an efficient tool to help its clients manage the assigned territory. Moreover, the company utilizes a network of sub-contract agents to provide detailed field reports, giving you a comprehensive view of the investigation progress.
Top Details/Business Activity
- Longevity: Established in 2008, the company has been an industry leader for several years
- Business Model: The company recovers rental vehicles for rental car agencies that have not been returned by its customers.
- Stable Revenues: With an average gross revenue exceeding $13 million from 2020 to 2023 and an anticipated gross revenue of $19.4 million in 2024, the company demonstrates a consistent and stable revenue stream. This notable strength highlights their ability to maintain a strong market position.
- Strong Cash Flow: With expected cash flow of over $6.4 million in 2024, the company's strong cash flow is a testament to its financial management and operational efficiency.
- Robust Cash Flow Margin: The company's impressive average cash flow margin of 27% 2020 to 2023, along with an expected cash flow margin of 33.1% in 2024, signifies strong profitability and financial health. Maintaining such healthy margins indicates effective cost management and a sustainable business model.
- Clean Books and Records: The Seller Runs ZERO Addbacks through the Company.
Strengths
- Nationwide Network of Agents: With an extensive presence spanning across the country, the company can rapidly respond to rental vehicle recovery requests from various regions and cities.
- Ability to Prepay Expenses to Bill Client: This unique and proactive approach streamlines the recovery process, as the company takes care of upfront expenses and later bills the client accurately and transparently. This financial assistance fosters strong client relationships, alleviates the financial stress for their clients, and distinguishes the company from competitors.
- Ability to Understand Client’s Urgent Needs: In the dynamic and time-sensitive world of auto rental recovery, the company excels in its exceptional ability to grasp and address clients' urgent needs promptly.
- Client Portal: The company developed an intuitive and user-friendly website; it acts as an efficient tool to help its clients manage the assigned territory. It provides essential real-time information about ongoing investigations and status of auto recovery.
Weaknesses
- Customer Concentration: Largest client is over 95% of total sales; however, the company has adapted to become the main vendor for this client, significantly minimizing the risk of losing the client and enhancing client retention and has 3-year auto renewal master contract with largest client.
Opportunities
- Market Investigative Services to Related Industries: Offer investigative services to auto lenders, leasing companies, banks, and credit unions by expanding the company’s utilization of the Recovery Database Network (RDN), a software platform that tracks repossession orders. The company’s expertise in locating and recovering assets can be valuable for these industries as well.
- Recapture prior rental car recovery business: Revisiting prior clients is an avenue for growth. The company elected to end servicing of a prior client due to pricing structure changes in 2012. However, the prior client has since undergone new management.
- Attract Smaller Regional Rental Car Companies: Targeting smaller regional rental car companies presents an opportunity to expand the client base. Smaller companies will appreciate the specialized approach and personalized service.
- Expand Services for Current Customers: Expand the services offered for current clients by adding additional field agents, office staff, and additional services.
- Market to Equipment Rental Industry: Applying the company’s expertise to the equipment rental industry can be a strategic move. The principles of asset recovery and location apply to various types of rental assets.
Reason for Selling
- The Owners have grown fatigued and would like to explore other ventures.
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