"Bringing balance and choice
back to the auto auction industry."
"Bringing balance and choice
back to the auto auction industry."
The Company has chosen the form of a publicly-owned corporation to be its growth vehicle. Acacia's management feels that a public corporation can act as the catalyst to raise the large amounts of capital required to grow, mainly through acquisitions, at the accelerated pace dictated by our business plan. The Company expects to raise most of the capital to implement its plan of acquiring existing automobile auctions through the sale of Common Stock. The company intends to engage in other capital raising activities during 2010 and beyond to accommodate its need for working capital and the funding to make additional acquisitions.
During its initial growth phase and well into the future, the Company will seek to acquire on an annual basis several medium-sized whole car auto auctions. However, all acquisition opportunities it sees as having the potential to enhance share value for our shareholders will be considered. Once the company has acquired several auctions, it will broaden its range of consideration to include larger entities. In addition to automobile auctions, the Company will also seek to implement or add boat, motor home, and RV sales as well as medium and heavy-duty truck and equipment sales and motorsports auction offerings wherever practical. Plans also include providing ancillary services that will fit our profile, including wholesale vehicle floor plan financing services for dealers; marshaling and inspection services; transportation services; full reconditioning services including paint and body repair; tires, batteries and accessories (TBA); paintless dent repair (PDR); title services, and more.
Acacia will rely upon its aggressive acquisition program for growth, to the fullest extent possible, at least for the foreseeable future. More auctions bring horizontal geographic growth, and better auctions provide the vertical service growth. Both are necessary to maximize shareholder value, and Acacia will strive for excellence in each category.
As a publicly-owned entity, the restructuring and revitalization of the Company required substantial expenditures which were initially funded by its management. The funding to fulfill the Company’s plan of acquiring automobile auctions required the raising of additional cash, a process which began with our first capital raise completed June 11, 2007, through the subscriptions of Common stock. The Company utilized funds from that first effort to commence operations and acquire its first operating auction. The Company recently acquired Chattanooga Auto Auction, and will seek to raise the capital to acquire other automobile auctions as well.
Acacia Automotive, Inc. acquired Augusta Auto Auction in North Augusta, South Carolina, on July 10, 2007. The auction is located in the metropolitan Augusta, Georgia area, just three minutes from the center of that city. After successfully meeting consummation of our initial stock offering and raising over $1,000,000.00 in initial working capital during June of 2007, the company was able to move forward with implementation of its strategic plan. The Augusta acquisition represented a material event for the company, since Acacia did not yet have other operations.
The Company's second acquisition, Chattanooga Auto Auction, was also considered a material event since its revenues are greater than the Augusta operation.
Acacia's management has been invited to consider acquiring a significant number of other auto auctions, and has completed visits to several of those locations. The Company is presently in the process of identifying the strategic value of each and how they might best fit our business plan and overall portfolio, and will then seek funding to consummate additional acquisitions. The success of the Company's acquisition plans will remain in large part reliant upon its success in raising capital.
Acacia Automotive has elected to be a full-reporting company under SEC rules. Please see our SEC page for additional information and links to the Company's filings with the Commission.