Raleigh, NC, January 28, 2013 --(PR.com
)-- Angel Acceptance, LLC, a Related-Finance Company (RFC) and Raleigh Auto Park, better known as James Taylor Autopark, LLC was acquired and consolidated into a holding company called Angel Automotive Group, Inc by Raleigh-based Acquisition Firm, VisionQuest Capital.
The acquisition was announced Thursday afternoon and the terms of the deal with VisionQuest Capital were not disclosed.
Angel Automotive Group, Inc currently consists of a single dealership, a related finance company and a lease and rental company all located in Raleigh, North Carolina. Currently, the company has revenue at roughly $5 million with margins at roughly 40%.
With the current economic downturn, specifically the housing collapse and unemployment rates, customers with poor credit represented 36% of the used car industry’s total revenue in 2012, according to NIADA Used Car Industry Report. Additionally, 25% of the US population is now considered sub-prime.
Stephen Peters, President of VisionQuest Capital, sees this as a huge and rapidly growing market opportunity. “This is a fragmented industry with no real dominant players…we see that the needs of this consumer as well as small dealerships are suffering from existing lending policies and have few options.” Peters continues, “James Taylor and his team know how to execute as they have expertise in the key areas of consumer acquisition, service experience, and technology and process, but what they need is an injection of capital for future growth. We believe this is an optimal time [to grow] because there are increasingly more customers in this phase of challenged credit.”
More and more acquisitions seem to be occurring in this space as private equity firms recognize the margins, cash flow, and ability to defer net income for future growth. Will MacNair, an Analyst who worked on this acquisition said, “It’s a great investment when you can have phenomenal cash flow with the ability to defer the payment of taxes for the future growth benefit of the company. Additionally, it provides peace of mind when you can see at least three or four successful ways to exit an investment.”