Back to Listings Auto Loan Lead Generation Online Business

Asking Price : $878,460

Annual Gross Revenue : $1,404,330

Annual Net Profit : $373,270

Profit Multiple : x2.35

Inventory Value: -

R-Index : 152

Order a Professional Assessment

From the Broker

Canadians and Americans wore out the showroom floors of car dealerships in 2016, driving automakers to record sales for the year in both markets.  Interestingly, before hitting the showroom, most car buyers hit the keyboard first.  In North America, the average car shopper now spends 11 hours online researching their next purchase.  The shopping is not just for the right car, buyers are also online looking for money to help with the purchase.  While statics vary from year to year, according to Experian Automotive, an industry research and data firm, about 78 to 82% of car buying is financed in some fashion, whether by car loans or leases.
 
This type of market data leads car dealers large and small to the inevitable conclusion that buyers make much of their purchasing decision online before they ever set foot on the lot. Finding buyers online is key to customer acquisition and continued sales growth. Accordingly, the online advertising spend in the automotive industry is ballooning.  The new trends and habits of current car buyers mean an online customer acquisition strategy is now an integral part of the success or failure of car dealerships. And while selling cars may be their strength, online advertising is often not, leading many dealers to seek help online finding new leads.
 
Each year the auto market is getting more competitive forcing dealers to continually look for new avenues to grow their businesses.  Buying auto leads has become the norm for both independents and dealer groups and it continues to grow throughout Canada as dealers grow the financing side of their business.
 
The founders of this business have over 10 years’ experience in the lead generation industry covering many verticals, industries and customer buying models.  Leveraging that experience, members of the group began focusing on the fast growing online automotive sales industry building models, data, experience and ultimately a set of powerful lead generation capabilities directly related to the automotive financing niche.  Having combined and honed their processes, this business has become a leader in the automotive lead generation space in Canada. 
 
The basis of the business is the generation and sale of auto loan related leads to car dealerships across Canada. The business operates three primary processes to generate its revenue: a set of online advertising campaigns and processes to attract leads, a proprietary lead capture, validation and processing system that automates much of the collection and sale of the leads to dealers in their network and an online advertising strategy focused on developing new dealer relationships and growing the customer base paying for leads generated by the system.  In the first fiscal year representing 10 months of 2016, this business generated $1.4 million CAD in revenue.  Revenue is on track in 2017 for a full 12 months to be around $1.5 – 1.8 million CAD. 
   
This company is a compilation of over 10 years of lead generation experience and 3 years of work to customize that experience into an auto loan lead generating machine. The proprietary processes and online assets along with many valuable intangibles make the business an excellent opportunity for buyers already in the lead gen or automotive spaces as well as those seeking a mature and established business that can be run part-time and remotely.  This company has quickly established a customer base and industry leading reputation in the Canadian market space. Building on this technology platform, customer base and revenue stream, the new owner could branch into new geographies (U.S. or the E.U), utilize other advertising platforms to collect leads (PPC, other social networks) as well as monetizing the growing client database with third parties in related industries (automotive accessories, vehicle warranties, etc.). From adding more lead generation avenues, to utilizing the untapped database to adding in third party offers, the company has an excellent runway of continued growth and profitability.  
 
CANADIAN DOLLARS
Listing Price $1,100,000 CAD 
TTM Gross Revenue $1,758,486 CAD
TTM Cash Flow $467,406 CAD
 
U.S. DOLLARS
Listing Price $832,800 USD 
TTM Gross Revenue $1,331,350 USD
TTM Cash Flow $353,873 USD
 

View Full Listing Back to Results

Listed By


Sale Pending: No

First Seen: Tue, Jun 20th 2017

Last Updated: Tue, Jun 20th 2017


Rhodium Weekend 2015
Never Overpay Again. Download the 2017 Website Buyer's Report