"Bringing balance and choice
back to the auto auction industry."
"Bringing balance and choice
back to the auto auction industry."
Q: Simply stated, what is Acacia’s plan?
A: In a nutshell, Acacia Automotive is a publicly-owned corporation that will act as a holding company in seeking to acquire and operate automotive auction services entities. It will begin by targeting whole car auto auctions, and move into ancillary businesses that complement its core auction business. The Company has announced that it intends to grow very aggressively, and does not intend to deviate from that plan in the near future. Acacia intends to recruit the finest management talent in the industry, to emulate the grown model of Anglo-American/ADT Automotive auctions, and to create an atmosphere that sponsors a hard-working but fun and enjoyable environment for its employees. Acacia intends to bring competition and choice back to the auto auction marketplace in a powerful manner that will benefit automotive dealers and commercial clients across the spectrum.
Q: Does Acacia have the expertise to accomplish those goals?
A: Yes. Acacia’s extensive business plan was meticulously conceived through thousands and thousands of hours of intensive efforts, culminating in a roadmap for success that management believes to be fully workable and easily implemented. Once the plan was established, the next task became finding the penultimate person to “Captain the Ship”. Those persons were found in Mr. Steve
"Junior" Sample, Mr. David Bynum, and Mr. Tony Moorby, each of whom reviewed any number of opportunities before committing themselves to this one. In accepting their appointments to various positions of importance with Acacia, each one declared that Acacia brought the perfect “fit” that they had been seeking. The Company mirrors those sentiments in extolling that they also brought that perfect “fit” to us as well.
Q: Will there be employment opportunities with the new Company?
A: Absolutely! Since the Company completed its initial fundraising, acquired its first auto auction, and became an operating company rather than a shell company, we are turning our eyes to the future. As the company grows, it will require personnel in a wide range of positions resulting in many opportunities. The addition of more operating sites will enhance these opportunities. Check this site often for employment opportunities or contact our managers directly for more information.
Q: When will the Company make more acquisitions?
A: Acacia could not enter into any discussions or negotiations relative to acquisitions until it had completed the changes to its capital structure and other organizational changes that were submitted for approval at its first Special Meeting of Shareholders on February 1, 2007. All the Board's proposals were ratified at that meeting, and the Company was thereafter empowered to take the actions authorizing it to raise capital through the sale of stock. Upon the completion of our first private placement offering of shares June 11th, we had the resources to complete our first acquisition. Acacia Automotive acquired the assets of Augusta Auto Auction on July 10, 2007, and has been operating that auction since July 11th...marking our first actual sale day. Please see more regarding this acquisition and its successes on our "News" page. After being invited to review additional acquisition opportunities by several independent auction owners the Company on August 31, 2009, executed the agreements to acquire Chattanooga Auto Auction. The Company will operate that auction under a Management Agreement until December 26th, at which time it will take possession of the auction and certain of its assets. This delay is done to allow the seller to complete its fiscal year and to allow Acacia an opportunity to effect an order transfer of management and ownership. A number of other acquisition opportunities are under consideration as the Company considers new fundraising opportunities to support those efforts.
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Q: What kinds of acquisitions will the company target?
A: Acacia will initially seek to acquire smaller to mid-sized going-and-functioning whole car auto auctions that fit its "footprint". The Company will review and evaluate any acquisition candidate as to its potentials for profitability and growth as well as its “fit” with our strategic plan. The Company will certainly consider investing in undervalued and underachieving operations if they present a favorable long-term opportunity. Acacia will also consider ancillary operations that would benefit its overall plan, such as: floorplanning entities, marshaling or inspection operations, various Internet operations, and others.
Q: In what area(s) will the Company seek its first acquisition(s)?
A: Geographically, the company might seek to locate its first acquisitions in an area generally east of the Mississippi River, but will not allow any geographical barriers to stand in the way of a prudent acquisition. Going forward, the Company will set aside any such limitations or preferences as additional operations are instituted. Having a presence throughout one or more large regions of the country will give the Company balance, and will act as a springboard for our ultimate aspirations for a broad national exposure. The first acquisition deal was closed in North Augusta, South Carolina, approximately three minutes from downtown Augusta, Georgia, in July of 2007, followed by the second in Chattanooga, Tennessee, in 2009.
Q: What rate of growth will Acacia seek in this acquisition process?
A: The Company feels that an average of three to four acquisitions per year would be manageable, although it also considers the acquisition of groups of auctions very realistic as a result of their systems and process alignments. Therefore, it is possible that some years with acquisition growth exceeding four auctions could be foreseeable. The "magic number" of four will continue to be our immediate goal on a year-over-year basis. Success in funding the Company's acquisition strategy through equity and/or debt capital will set the pace of acquisitions.
Q: How will the Company pay for these acquisitions?
A: The Company expects to raise most of the cash to implement its plan of acquiring existing automobile auctions through stock-for-stock (or stock-for-assets) acquisitions, equity capital generated through the sale of its Common Stock, through debt financing, or a combination of all these. The Company has tremendous flexibility in making acquisitions, as it can acquire entities with its own cash, can leverage its cash and assets, can utilize other credit facilities and lines of credit, and even utilize its own capital stock in acquisition transactions. Some stock-for-stock acquisitions may result in a tax-free transaction for certain sellers, thereby providing a tremendous financial benefit to them in addition to the potential for stock value appreciation. The Company may also have the option of looking to public offerings of its shares in the future, as opposed to private placement offerings, to fund these and other activities. Each transaction will require a full consideration of the available options in seeking to maximize the benefit to all, and most particularly to building value for the shareholders.