"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 auctions and related entities. It will begin by targeting whole car auto auctions, and may expand into ancillary businesses that complement its core auction business. The Company hopes to implement its acquisition and growth plan as it moves into the future. Acacia intends to bring competition and choice back to the auto auction marketplace in a 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, Mr. Steve
"Junior" Sample, took the reins as "Captain of the Ship".
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. Other acquisition opportunities will be reviewed as the Company considers new fundraising opportunities to support those efforts.
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.
Q: What rate of growth will Acacia seek in this acquisition process?
A: Under ideal conditions with proper funding, the Company feels that an average of one or two acquisitions per year would be manageable, although it also considers the acquisition of small groups of auctions very realistic as a result of their systems and process alignments. Therefore, it is possible that some years may see no acquisition activity, while others may see acquisition growth exceeding several auctions. The "magic number" of one or two will continue to be our immediate goal on a year-over-year basis, and will be modulated by availability of management resources, capital, and otherwise. Success in funding the Company's acquisition strategy through equity and/or debt capital will have a direct effect on the pace of this plan.
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, through equity capital generated from 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. Coupled with its valuable tax loss carryforward of approximately $12,000,000.00, the mutual benefits to combining with other profitable auction operations is very attractive. 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.