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Tire and Service

Acquiring Controlled Distribution Aids Brand Share Growth

Here’s a little history lesson for the young people. Bridgestone Corp. was not always the largest tire company in the world. The acquisition of Firestone Tire & Rubber Co. in 1988 helped make it the largest.

Initially, the deal did not include the Firestone stores, but to outbid a combined offer from Pirelli & Cie …

Independents vs. Conglomerates: Who’s Winning the Battle for Tire-Buying Consumers?

It seems like every issue of Modern Tire Dealer has an announcement of a new acquisition by Monro Inc., Icahn Automotive Group LLC, Bridgestone Americas Inc. and the like. One would assume by reading these that what I call the company-owned conglomerates are “winning the war” for the hearts and minds of consumers, but I …

The Power of Pricing: Healthy Margins Improve the Value of Your Business

My father-in-law, Ed Tuck, was a pretty smart guy. Before becoming a venture-capitalist and founding Magellan GPS, he was a turnaround consultant to failing telecom businesses in the 1980s. (Read “A Sense of Direction,” Ed Tuck and Mike Khaldun, Dog Ear Publishing, 2018.) I once asked him about the first things he did when he …

What Matters Most to Your Store’s Potential Buyer?

Last month we looked at several important considerations that matter to strategic and financial buyers when looking for an acquisition of a multi-unit tire and service retailer. They were revenue size, geography, the stores themselves, area demographics, and growth trajectory and future prospects.

Sophisticated buyers want to know everything about your business before acquiring it …

Potential Buyers Expect EBITDA to be at Least 10% of Sales

Last month we looked at several important considerations that matter to strategic and financial buyers when looking for an acquisition of a multi-unit tire and service retailer. They were revenue size, geography, the stores themselves, area demographics, and growth trajectory and future prospects.

Sophisticated buyers want to know everything about your business before acquiring it …

Understanding Private Equity Investments in the Tire and Service Business

With the recent combination of private equity-owned Mavis Tire Supply Corp. and Express Oil Change & Tire Engineers (Express Oil Change LLC), it’s a good time for tire dealers to understand how private equity plays the acquisition game differently than strategic acquirers like Monro Inc.

Private equity groups raise large amounts of money from institutions, …