Citizens Group
Why Automotive body shops?
Citizens Group (CG) is an investment firm actively investing in the North American market. We are focusing on Auto body landscape & related sub-sectors.
Low P/E Ratio & Less Competition from Investors
Relative to the large supply of baby boomers looking to exit, there are few entities on the demand side of the M&A equation. This leaves us with an opportunity. We know this is the case because smaller private equity firms have just started to invest in the automotive collision space. We understand the importance of price when deciding to invest. Warren Buffett has long said, “This is the cornerstone of our investment philosophy: Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results.” No one can argue with that. Even the best acquisition target, if vastly overpaid for, loses its investment zest.
High Returns on Invested Capital
Autobody companies generally have high returns on capital invested in the business. The space only requires an office, a modest shop to store tools and equipment (very minimal), and space to work on cars. Our acquisitions prioritize efficient spending on new assets versus our peers. There is a lot less capital required to run a collision repair company than, say, a car manufacturer. The less capital we have to invest on large machinery and equipment, the easier it is for us to profitably grow revenues. This is another reason we love this sector. This offers our investors a great opportunity to receive a high return on invested capital.
Fragmented
Relative to the large supply of baby boomers looking to exit, there are few entities on the demand side of the M&A equation. This leaves us with an opportunity. We know this is the case because smaller private equity firms have just started to invest in the automotive collision space. We understand the importance of price when deciding to invest. Warren Buffett has long said, “This is the cornerstone of our investment philosophy: Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results.” No one can argue with that. Even the best acquisition target, if vastly overpaid for, loses its investment zest.
Our Strategy
Citizens Group seeks to diversify our portfolio by investing in SMB autobody companies within North America.
Our Strategy
- Management Buyouts
- Majority ownership buyout
- Buyout of Retiring Owners
- Leverage Buyouts
- General Transfers
- Distressed sales
Criteria For Target Companies
- Annual revenues of $1M to 10M
- Minimum of $200K in adjusted EBITDA annually
- In business for at least 3 years with 3 years worth of financials
- Strong incentives for key employees
- Preferably in the Texas & Florida Market
Industries
- Auto collision & paint repair
- Auto Glass Repair
Want to make a quick $10,000+ from the comfort of your home every single month?
Invest With Us
Contact Us
- mh@citizens-group.com
- Office Number: 214-707-0847
Contact Us
- mh@citizens-group.com
- Office Number: 214-707-0847