Industry: Tire & Auto Service Centers
Location: North Carolina
Industry Roll-Up: $10M+
M&A Advisor: Tully Ryan
In this episode of the M&A Deal Team Podcast, we sat down with Marc Pons, CEO of Chapel Hill Tire, for a deep dive into entrepreneurship, business strategy, and growth through acquisition and roll-up strategy. Chapel Hill Tire, a family-owned business with over 70 years of history, is known for its exceptional customer service and a culture rooted in integrity, excellence, and community involvement.
Marc Pons discusses Chapel Hill Tire’s strategic approach to growth through acquisition, highlighting how they’ve expanded their reach by acquiring other tire and automotive service centers while maintaining their commitment to quality service. The conversation delves into the complexities of the M&A process, emphasizing the importance of due diligence, financial assessment, and cultural alignment when acquiring other shop. Marc offers valuable advice to aspiring entrepreneurs, emphasizing the need to stay true to core values, patience, and assembling a team of experts to navigate the intricacies of M&A.
Roll-up acquisition strategy: What is a roll-up? Roll-up acquisitions can be beneficial, but they can also be difficult to pull off. Acquisitions are often complex, and roll-ups in particular face certain obstacles that can be difficult to surmount. A roll-up acquisition is a consolidation process whereby smaller companies are rolled-up to form a much larger entity. Roll-up acquisitions are frequently sought after by well-run medium sized businesses within a specific industry, as well as by private equity firms and investors. They are often used in fragmented or new market sectors and are a way for businesses to grow and expand. Because large companies are often valued more highly than smaller ones, they enable ambitious business owners and private equity firms to drive value from a sale of the acquiring business. In a roll-up merger, the owners of the companies being merged get cash for their exit. The advantages to the new business’s owners can include better market placement, improved access to new customers, technology, economies of scale and markets.
About Murphy Business: Murphy Business is a leading provider of tailored business intermediary and M&A services for owners of large main street and lower middle-market businesses. With a focus on businesses generating between $1 million and $25 million in revenue, Murphy Business has handled engagements in excess of $3.1 billion across various industries in North America. Their experienced deal team assists owners in achieving their personal objectives by offering creative, value-maximizing solutions for exiting their businesses. Whether business owners are ready to sell their business, create an exit or succession plan, or find the right buyer, Murphy Business is here to help.