Aceparts, one of the best known eBay Motors parts dealers has been acquired by Vertu Motors for £2.2 million. This includes an initial payment of £1.8 million has been settled in cash along with an earn out over a five year period. Goodwill was estimated at £1 million.
Huge congratulations to Alan Friedman and Ben Friedman the founders along with their 21 staff who are all transferring to Vertu.
Vertu are a motors retailer with a network of 119 sales and aftersales outlets across the UK. AceParts reported revenues of £4.8million with a gross margin of 19% in their last annual report, and with long established eBay and Amazon presence as well as their own website have built a phenomenal business since their launch in 1998.
Pretty much everyone who builds an online business dreams one day of cashing in and selling out. It’s fantastic to see Aceparts exit to become part of a much larger group and is testament to the commitment they’ve shown to their 683k eBay feedback and customer service.
Aceparts have long established themselves as expert marketplace sellers, but they’ve also built their website business and doubtless this was a key part of the exit strategy. If one day you’re look to exit your online enterprise a website with your own subscriber list will have many times more value than a purely marketplace based business.
Welcoming them to the group, Robert Forrester, CEO of Vertu Motors said “This is an exciting development in a growing space, which is parallel to our core motor retail business and has synergies with it. We expect AceParts to generate an earnings stream with higher gross and net margins than those in motor retail, and we believe that the future growth prospects for this new business are substantial. By working with the niche skills of the AceParts team and the Group’s franchise partners, we believe that we can build a significant business which will meet the needs of a wide range of customers seeking specific vehicle parts”.