Jon,
Thank you for the time on our call. Here is how I see us putting this together, so we can both work from the same page.
We bring together a handful of the best family-owned franchised dealer groups into one national group and take it public. Each family keeps running its stores under its own name.
Privately, almost no one will pay these owners a good multiple or let them take some cash out while keeping a stake in the future. With us they get both: part of the price in cash at closing, and shares in a bigger group that can be valued like the public dealer groups below.
The goal is a group with at least $100 million in combined revenue, with every member group profitable. Within about six months of all the groups signing their agreements and having audited financials, we aim to be a public company.
A private dealer group sells for a few times its profit. The public dealer groups trade at roughly 6–10 times earnings, and the market pays far more (Carvana is above 30 times) for car retail that runs like a technology company. We buy each group at a sensible multiple, mostly in shares, so the owners' stake is worth more on the day we list and the story makes sense to investors. If we overpay going in, nobody wins, so the price has to leave that room.
Every group gets the same menu. The more an owner takes in shares, the higher the multiple.
| Option | Cash at closing | Price (× last 12 months' adjusted profit) |
|---|---|---|
| A | 30% | 3× |
| B | 20% | 4× |
| C | 10% | 5× |
Owners keep their stores' names and teams, a contract to keep running them, and a seat at the table for the larger groups. This menu is the starting point; if an owner has another structure in mind, we listen.
We will also open conversations with the manufacturers and a floor-plan lender early, since every franchise transfer needs the manufacturer's consent.
Hi [Name],
I'm putting together a group of some of the best family-owned dealer groups in the country, and you're one of the first people I thought of.
You keep running your stores, under your name. You get a fair price, part of it in cash at closing and the rest as an owner of a much bigger group.
Would you be open to a short call?
You and I split our part of the sponsor company 50/50. Together we bring the deals and the capital: you through the owners you know, me through the investors, lawyers and bankers.
To get to the listing we bring in two more partners, and our part is diluted to make room for them. Roughly:
Roll-ups rarely fail for lack of deals. They fail when no one is clearly in charge, numbers are not controlled, and people take money out instead of building. We set this up properly from day one:
Closing prices 19 October 2026. P/E is price ÷ last 12 months' earnings; "n/m" means losses or near-zero profit.
| Company | Ticker | Market value | Revenue | P/E | What they own |
|---|---|---|---|---|---|
| Franchised new-car dealer groups | |||||
| Penske Automotive | PAG | $13.9B | $32.2B | 15.4 | ~350 franchised stores, mostly premium brands (BMW, Mercedes, Porsche, Toyota), US/UK/Australia; heavy-truck dealers |
| Lithia Motors | LAD | $6.4B | $37.9B | 9.8 | ~450 franchised stores, mainstream brands; built by buying family-owned groups |
| AutoNation | AN | $5.3B | $27.5B | 7.4 | ~240 franchised stores plus its own used-car stores and lender |
| Asbury Automotive | ABG | $3.1B | $18.0B | 6.4 | ~150 franchised stores; bought large family groups (Larry H. Miller 2021, Herb Chambers 2025) |
| Group 1 Automotive | GPI | $2.8B | $22.2B | 10.2 | ~250 franchised stores, US and UK; started as four family groups joined at its listing |
| Sonic Automotive | SAH | $2.0B | $15.5B | 10.0 | ~100 franchised stores, mostly luxury, plus EchoPark used stores |
| AutoCanada | ACQ (TSX) | C$0.6B | C$4.9B | 12.6 fwd | ~60 franchised stores, 23 brands in Canada; built by buying family dealers |
| Used cars | |||||
| Carvana | CVNA | $65.4B | $25.1B | 32.4 | Online used-car retailer; valued as a technology company |
| CarMax | KMX | $7.3B | $29.5B | 25.2 | ~250 used-car superstores plus its own lender |
| America's Car-Mart | CRMT | $9M | $1.1B | n/m | 94 buy-here-pay-here lots; loss-making, going-concern warning in 2026 |
| Other vehicle dealers built from family-owned dealers | |||||
| Rush Enterprises | RUSHA | $5.3B | $7.2B | 20.4 | ~150 heavy-truck dealerships (Peterbilt, International) |
| MarineMax | HZO | $1.2B | $2.2B | n/m | ~120 boat dealerships and marinas |
| Camping World | CWH | $0.5B | $6.3B | n/m | ~200 RV dealerships plus Good Sam; loss-making |
| RideNow Group | RDNW | $0.2B | $1.1B | n/m | ~50 powersports dealerships; loss-making |
| OneWater Marine | ONEW | $0.2B | $1.8B | n/m | ~95 boat dealerships in 19 states; loss-making |
Two things stand out. The franchised groups, backed by the manufacturers and their service income, have held up best; the small used-car, RV and boat roll-ups that bought with debt and without tight operating control are where the losses are. And the market pays most for car retail that runs like a technology company.
I'm excited about this. You know these owners and what makes a store run well; we bring the structure, the capital and the path to the public market. Together I think we can build something none of them could build alone.
Best,
Moran Pober
Acquisitions.com
Every member group will need audited financial statements (usually the last two to three years, by a firm able to audit for a public listing) before the company can list. These audits are part of each group's agreement; who pays for each one is agreed group by group and is not assumed to come from early or seed funding.
Manufacturer consent, floor-plan financing, a securities lawyer's review and market conditions all apply. Figures are estimates for discussion. This letter is not an offer to buy or sell securities and creates no binding obligation.