Under the hood: Our recent success in the automotive industry

Our recent success in the automotive industry

Hilton Smythe is leading the way in mid-market automotive M&A, having recently advised on two exciting divestitures within the sector.

Despite a backdrop of macroeconomic challenges and the high cost of capital, players operating in the UK’s automotive aftermarket are increasingly being snapped up by both domestic and overseas investors amid a surge in dealmaking in the sector.

Hilton Smythe supports Merino Capital’s acquisition of Premier Bikes, a high-performing KTM and Triumph dealership with £13.5m turnover and £1.5m adjusted EBITDA

Through a full marketing and research process, Hilton Smythe connected Premier Bikes with SME investor Merino Capital, securing a lucrative 110% premium above the seller’s initial aspirations and leading to a successful acquisition.

Established over 25 years ago, Premier Bikes is an independent dual-Franchised KTM and Triumph motorbike dealership, based near Abingdon, Oxfordshire.

The company had undergone significant revenue growth in recent years, becoming a core partner for Triumph and KTM and turning over nearly £13.5m in 2022 with an adjusted EBITDA of nearly £1.5m.

Beyond a mere dealership, the company has developed several distinct revenue streams, selling new and used bikes, parts and accessories, offering comprehensive servicing and MOTs, and operating an on-site café.

With an experienced management team in place, the deal allowed the two shareholders to exit the business fully, while cashing out on the considerable value they had built up.

Premier Bikes now joins Merino Capital’s portfolio of ten businesses.

Mark Colley from Merino Capital said: “We are delighted to complete the acquisition of Premier Bikes and Triumph Oxford.

“The business has built a strong reputation for excellent customer service, and we look forward to working with the team to continue to grow and develop the business over the coming years.”

Hilton Smythe guides CP Garage Services’s acquisition of a strategic growth partner

Under the guidance of Hilton Smythe, the shareholder of Dundee-based CP Garage Services divested fifty percent of his shares to a private buyer, pathing the way for full divestment and retirement in future years.

Established in 1993, the business proved an attractive asset, boasting a loyal national customer base, a steady stream of referrals and a strong financial profile, and through Hilton Smythe’s comprehensive marketing and negotiation efforts, a competitive price was achieved on the sale.

As well as providing a capital injection, the acquisition will allow the new business partners to pool their expertise and resources to take CP Garage Services into its next stage of growth.

A rapidly evolving sector

The automotive sector is undergoing an exciting period of transformation and consolidation, as new technology revolutionises not only cars, but sales and servicing as well. The transition to EVs is increasingly setting the stage for owners wishing to exit at a high multiple as the industry consolidates.

As well as seeking quality assets, larger dealer groups are also looking for smaller synergistic acquisitions that densify their networks for wider customer access.

For example, Brayleys – majority owned by Dubai-based international investors AW Rostamani – has snapped up several dealerships in the South East in recent times, including a family-owned Hyundai dealership in St Albans at the end of last year and Camplins-owned Grovebury Kia in Dunstable in May. And in March, US car dealership Lithia Motors bought British Luxury car dealer Jardine Motors as part of a £300m deal.

JCB Group, the Doggett Automotive Group, Vertu Motors, Holden Group, SLM, and Livingstone Motor Group have also all been active in UK dealership M&A in recent months, seeking to bolster their regional and national footprints.

Why engage the services of a business broker when selling your automotive business?

Business brokers like Hilton Smythe understand the current market trends, valuations and comparable transactions in the industry, ensuring you get a fair price.

We also have access to a network of potential buyers and investors, increasing your chances of finding the right partner.

We can also provide support throughout the deal structuring and due diligence process, helping to minimise tax implications, maximise financial benefits and ensuring a smooth information exchange.

The result? A stress-free and value-maximising exit from your automotive business.