Pride Dealer Services - Investment Presentation

Executive Summary

Investment Opportunity

$5,000,000

Investment Amount

50%

Equity Ownership

$10,000,000

Company Valuation

$4.5M TTM Revenue (Profitable)

12% Net Margin (Cash-Generative)

15+ Sites National Footprint

Certified Manheim Supplier Diversity

Why We Win

Sticky Enterprise Revenue Multi-year MSAs
Operational Playbook SOP + QA + Rate Index
Expansion Catalyst Access to 100+ Manheim sites

Business Overview

What We Do

Pride Dealer Services provides essential detail and condition reporting services to the automotive industry. We inspect, document, and detail vehicles for auctions, dealerships, and fleet companies nationwide.

Our Services

Vehicle Detail Services: Professional cleaning and reconditioning
Condition Reports: Comprehensive vehicle inspections and documentation
Digital Documentation: Photo and report generation for resale purposes

Key Partnerships

Cox Automotive (Manheim Auctions)

Current Monthly Revenue $120,000
Locations Served Multiple Manheim Sites
Recent Development Qualified for Supplier Diversity Program

Dent Wizard International

Current Monthly Revenue $82,000
Growth Opportunity Bundled Services Expansion

Concentration & Diversification

Current Risk: Cox (32%) + Dent Wizard (22%) = 54% revenue concentration

Mitigation Target: Maintain Other clients ≥45% revenue through 2030

Current Financial Performance

2025 Monthly Operating Results

Revenue Source	Monthly Revenue	% of Total	Annual Projection
Cox Automotive	$120,000	32%	$1,440,000
Dent Wizard	$82,000	22%	$984,000
Other Clients	$173,000	46%	$2,076,000
Total Revenue	$375,000	100%	$4,500,000

Cost Structure & Profitability

Item	Monthly	Annual	% of Revenue
Total Revenue	$375,000	$4,500,000	100%
Cost of Goods Sold	$300,000	$3,600,000	80%
Gross Profit	$75,000	$900,000	20%
Operating Costs	$30,000	$360,000	8%
Net Income	$45,000	$540,000	12%

5-Year Growth Projections

Revenue Growth: $4.5M to $10.8M (140% total, 19% CAGR)

Year	Cox Revenue	Dent Wizard	Other Clients	Total Revenue	Net Income
2025	$1,440,000	$984,000	$2,076,000	$4,500,000	$540,000
2026	$2,016,000	$1,574,400	$2,387,400	$5,977,800	$717,336
2027	$2,620,800	$2,204,160	$2,626,140	$7,451,100	$894,132
2028	$3,144,960	$2,755,200	$2,836,231	$8,736,391	$1,048,367
2029	$3,459,456	$3,306,240	$3,063,129	$9,828,825	$1,179,459
2030	$3,667,024	$3,802,176	$3,308,200	$10,777,400	$1,293,288

19% Annual Growth Rate (CAGR)

139% Net Income Growth

12% Consistent Net Margin

Growth Strategy & Competitive Advantages

Cox Automotive Expansion Strategy

Supplier Diversity Program Certification

Recently Qualified: Pride Dealer Services has been certified under Manheim's Supplier Diversity Program, providing preferred vendor status.

Current Manheim Locations Multiple Sites Active
Available Expansion Sites 100+ Manheim Locations Nationwide
Rollout Assumptions 10-site rollout, 6-9 mo ramp, $18-25K/site/mo steady-state
Expected Growth (10 new sites) $120K → $306K monthly by 2030

Dent Wizard Partnership Expansion

Bundled Services Strategy: Combine detail services with Dent Wizard's repair capabilities for comprehensive vehicle reconditioning.

Target Markets OEM Lease Returns, Fleet Remarketing
Service Integration Detail + Dent Repair + Condition Reports
Expected Growth (3 markets) $82K → $317K monthly by 2030

Site Unit Economics (Steady State)

Metric	Per Site	Notes
Monthly Revenue	$18–25K	By volume & mix
COGS	~78–80% Rev	Pre-indexation
Gross Profit	$3.6–5.5K	20–22% GP
Site Opex	$0.8–1.2K	Supervisor/QA/overhead
Site EBITDA	$2.8–4.3K	~12–17% margin
CapEx / New Site	$150–200K	Equip + onboarding + WC
Payback Period	10–14 months	6–9 mo ramp

Pipeline & Evidence

6 Shortlisted Manheim Sites

3 LOIs Pending

2 Renewals Signed ('25)

Appendix Redacted LOIs / MSA excerpts
Case Study Manheim site: throughput +28%, rework −35% in 90 days
Collections DSO 43d → 36d over last 2 quarters

Margin Bridge (Gross Profit %)

Scheduling & Routing

Idle time↓, throughput↑ (+1–2 pts)

QA / SOP

Rework↓, consistency↑ (+0.5–1 pt)

Rate Indexation

CPI/labor pass-through (+1 pt)

Tech Automation

Photo→report workflow (+1–2 pts)

20% ➜ 24–25% Target within 12–18 months

12–18 Month Milestones & KPIs

+5 New Manheim Sites Live

≥22% Gross Margin by Q3

≤35 days DSO

0 Major QA Incidents

Q1 2 sites live; rate-card index active
Q2 ERP/automation 50% deployed
Q3 5th site live; GP% ≥22%

Investment Structure & Use of Funds

Investment Terms

Investment Amount: $5,000,000

Equity Percentage: 50%

Pre-Money Valuation: $5,000,000

Post-Money Valuation: $10,000,000

Valuation Context

Current Multiple: $10M valuation ÷ $540K net income = 18.5× earnings

Justification: Multi-year enterprise contracts + diversity program access + national expansion runway + 19% projected CAGR

Forward Multiple: Based on 2030 projected earnings of $1.3M = 7.7× forward P/E with unit-economics-backed rollout

Use of Investment Funds

Use of Funds	Amount	% of Total	Purpose & Expected Return
Cox Automotive Expansion	$2,000,000	40%	10 new Manheim locations → $186K additional monthly revenue by 2030
Dent Wizard Partnership	$1,500,000	30%	Bundled service development in 3 markets → $235K additional monthly revenue
Technology & Systems	$500,000	10%	AI reporting platform & ERP → reduces labor dependency, improves margins
Working Capital	$600,000	12%	Cash flow management during rapid growth phases
Debt Consolidation	$400,000	8%	Pay off existing payables + obligations → strengthens balance sheet
Total	$5,000,000	100%	Balanced allocation across growth and stability

Risk Assessment & Mitigation

Key Business Risks

1. Customer Concentration Risk

Risk: Cox + Dent Wizard = 54% of revenue

Mitigation: Maintain Other clients ≥45% revenue; diversify into fleet/OEM channels

2. Economic Downturn Impact

Risk: Reduced auto sales and auction activity during recessions

Mitigation: Essential reconditioning services for used car market; recession-resistant business model

3. Labor Cost Inflation

Risk: 80% of revenue goes to COGS, primarily labor costs

Mitigation: Rate indexation clauses in contracts; automation initiatives to reduce labor dependency; productivity improvements through standardized operations

4. Contract Renewal Risk

Risk: Multi-year contracts may not renew at favorable terms

Mitigation: Strong performance metrics; preferred vendor status through Supplier Diversity Program; continuous service quality improvements

5. Operational Scale Challenges

Risk: Difficulty maintaining quality standards during rapid expansion

Mitigation: Standardized operating procedures; comprehensive training programs; technology-enabled quality assurance systems

Risk Monitoring Framework

Monthly Reviews Customer concentration tracking
Quarterly Assessments Contract renewal pipeline
Annual Planning Market diversification strategy

Executive Summary & Next Steps

Investment Highlights

$5M

Investment

50%

Equity

19%

CAGR

Proven Business Model

$4.5M TTM revenue with 12% net margins and positive cash flow

Clear Growth Path

Access to 100+ Manheim locations through Supplier Diversity certification

Strong Unit Economics

10-14 month payback period on new sites with 12-17% EBITDA margins

Experienced Management

Operational playbook with SOP, QA systems, and rate indexation

Conclusion

Pride Dealer Services represents a compelling investment opportunity in a proven, profitable business with clear expansion pathways. The company has demonstrated consistent profitability with $4.5M in annual revenue and 12% net margins while maintaining strong relationships with industry leaders like Cox Automotive and Dent Wizard.

The recent certification under Manheim's Supplier Diversity Program unlocks access to over 100 locations nationwide, providing a validated growth strategy with established unit economics. Combined with proven operational excellence and standardized processes, this creates a scalable platform for sustainable expansion.

Your $5M investment will fuel rapid but controlled growth, targeting $10.8M in revenue by 2030 with a 19% CAGR. This is more than just an investment in automotive services—it's an opportunity to partner with a management team that has built systematic competitive advantages in an essential, recession-resistant market.

Ready to drive growth together?