Angel Automotive Group Finds an Angel
January 28, 2013 -- !-- AddToAny BEGIN -->
Raleigh, NC, January 28, 2013 --(PR.com)-- Angel Automotive Group, Inc finds an equity partner in VisionQuest Capital, a Raleigh-based Acquisition Firm.
The announcement of this acquisition occurred Thursday afternoon, January 24, 2013, but the terms of the deal with VisionQuest Capital were not disclosed.
Angel Automotive Group, Inc currently consists of a single dealership, a related finance company and a lease and rental company all located in Raleigh, North Carolina. Currently, the company is a small business with strong margins but, with the new capital from VisionQuest, management believes it will double in size over the next 12 months and expand to multiple locations.
James Taylor, the Founder and President & CEO of Angel Automotive Group will continue at the helm. Mr. Taylor says, “This is a big day for us. The missing ingredient for our growth was capital.” He continues, “…when we went to look for a partner [investor], we loved the idea that we already had involvement with Steve [Peters] and his firm and we knew his philosophy, style and interest of investing in management and companies. His firm is not the kind that tries to come in and re-engineer everything we’ve built it into in another direction. Their focus is to make money so they will bring value to the areas of both growth and scale.”
Stephen Peters of VisionQuest Capital says, “We are pleased to continue with James Taylor’s initial vision. The company has always been in competent hands and our goal is to fund AAG’s growth and to expand this business to multiple locations.”
Peters continues, “In the future, we see an opportunity to franchise and support a portion of the roughly 31,000 independent dealerships in the United States through the related finance company. …our cash, our people, our systems, and the ability to raise an additional $4.5M in outside capital through our network will ensure the vision of James will become a reality.”
Private equity firms are placing bets on Buy Here Pay Here used-car dealers as they are attracted by the industry’s average profit of 38% for each car sold as well as the ability to have more than healthy margins on the loans, which in turn can always be packaged into securities much like subprime mortgages. Although this is not an uncommon investment for private equity firms, it is the first of its kind in the Raleigh area.
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