Business Overview

A rare opportunity to acquire a specialized B2B distributor of tire repair materials, tire pressure monitoring systems (TPMS), wheel service equipment, and automotive shop supplies serving an isolated island market of ~870,000 people. The company operates as the sole specialized distributor of its kind on the territory, supplying 250+ active accounts across tire shops, national chains, auto dealerships, independent service centers, fleet operators, and government agencies.

Revenue has exceeded $1M annually for five consecutive years, with consistent 36% gross margins and net margins of 19–25%. The top customer represents just 6.9% of revenue, and the top ten combined are only 38% — a broadly diversified book built over four decades of trust-based relationships.

Key Investment Highlights

>40-Year Operating History — Founded 1986, continuously operated through multiple economic cycles; customer count has grown steadily, not shrunk.

>Geographic Moat — Island isolation (freight costs, ferry delays) makes mainland competition impractical. Amazon can't deliver same-day; general auto parts distributors lack the specialty expertise.

>Recurring-Revenue Model — High-frequency consumables (TPMS, wheel weights, patches, cements, valves, shop supplies) drive reorders by operational necessity.

>National Platform Access — Distributor partner with Canada's largest tire-and-wheel-service supply network (50+ brand partners, 10,000+ SKUs, training, e-commerce tools). Distributorship is transferable subject to approval.

>Low Customer Concentration — 250+ active accounts; no single customer >7% of revenue.

>Lean Operations — Home-based with no commercial lease, minimal capex, 2-person team. Low overhead is a structural margin advantage.

>Fair Valuation — Priced at 0.88x revenue and 3.39x SDE, below NAICS 423110 median of 3.65x SDE.

>Buyer Returns — Year-1 DSCR of 1.71x and 17.6% cash-on-cash return at base-case EBITDA with a 30% down payment assumption.
Operations & Business Model

The business operates a mobile, route-based distribution model. Product is sourced from a national supply network and 50+ brand partners, stored at the owner's home base, and loaded daily into a custom-fitted 2019 cargo van for same-day and next-day mobile delivery across the island. Customers place orders in-person during route visits or by phone — customer acquisition happens almost entirely through route coverage and referrals, with zero spend on advertising, SEO, or social media.

Revenue follows a predictable seasonal pattern tied to BC's winter tire regulations, with 60–70% concentrated in two six-week peaks (April–May changeover and October–November changeover). Off-peak months generate steady baseline revenue from repairs, equipment sales, and shop-supply restocking.

Ideal Buyer

This opportunity suits an owner-operator seeking a turnkey cash-flowing business, a regional distributor pursuing a tuck-in acquisition into BC, or a search-fund or individual buyer targeting a stable, recurring-revenue B2B business with a clear geographic moat and identified organic-growth levers. Comfort with field-based customer relationships on Day 1 is recommended.