Mid 2023 Recreational Vehicle Industry M&A Report
This article is a summary of recent M&A activity in the recreational vehicle industry in 2023.
The recreational vehicle industry is coming off two of the most profitable and demanding years in a row. The effects of the COVID-19 pandemic and economic shutdown greatly benefited all aspects of the industry, from manufacturers, dealers, repairs, and campgrounds. The companies that were ready capitalized greatly and added a new generation of customers to its base. But now what? 2023 is proving to be a very different year for all involved.
Recent Mergers and Acquisitions
Despite the recent slowdown in the RV industry as a whole, mergers, and acquisitions are still going strong. Marcus Lemonis, Chairman and CEO of Camping World, recently said, “Our goal is to achieve 50% growth in our store count over the next five years”. Camping World is currently the largest retailer of RVs and has 197 store locations. Many other conglomerates are looking to expand via acquisitions and new store openings.
By Craig Hudman, Managing Director at Jackim Woods & Co.
Jackim Woods & Co. is a leading mergers and acquisition advisor focused on providing senior-level attention and flawless execution to clients in the recreational vehicle industry.
Craig is an experienced mergers & acquisitions professional, a former owner of a leading RV dealer, and a dealership management and operations expert. He brings over 30 years of RV-related experience.
To arrange a free, confidential initial consultation, please contact Craig Hudman at (208)521-1521 or chudman@jackimwoods.com.
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You Don’t Know What You Don’t Know: Selling an RV Dealer
If you’ve ever heard the saying, “You don’t know, what you don’t know,” and never understood it, I was there also. I sold my family business about 18 months ago to a much larger company. At the time, I thought that knew a lot about the RV industry, after all, I was a third-generation owner. I figured if my grandfather and father had been successful for over 50 years, what they’d taught me ought to be enough. That idea, that concept embedded into the depths of my thought, couldn’t have been more wrong. I soon would learn “what I didn’t know.”
The first six months were really a blur. Our projections and goals were constantly changing based on more growth than I ever could’ve imagined. All of the new tools and information I now had at my disposal were amazing. Any question I had could be answered, and hunches could now be backed up with quantifiable data. I’ll admit it was a bit of an overload at first, but now it has become normal.
To people that have been brought into the light after having been in the dark, the world seems amazing, and this is how I felt. Along with this amazing feeling also comes a bit of shame. I now can say, “I didn’t know what I now know.” Shame comes from knowing that in 50 years of business, we never truly grew. Not when I came home from college with all my “fancy” degrees and learning. Not from an evolving economy. We only focused on small, consistent growth that was very risk-averse and preservation-minded. Debt was always considered bad. Sure, we made a great living, but now I know what could’ve been.
So to all those out there who “don’t know what you don’t know,” I suggest you learn before it cost you as much as it cost me. Sure, it cost me in the valuation of my company, but most of all, it cost me years of personal and professional growth. Now I am always searching for ways to improve, so if I am ever in the same position, my “don’t know” won’t last very long.
If you own an RV dealer, supplier, or OEM and would like to explore your growth options or exit options, I would welcome an opportunity to speak with you. Feel free to contact me for a confidential, no-cost, no-obligation consultation at chudman@jackimwoods.com or 208-521-1521. I look forward to speaking with you.
Read MoreFor Sale: Profitable Ohio RV Dealer with $4.3 Million in Revenue
A well-established RV dealership in Ohio is for sale. This turn-key operation includes nearly 6 acres of real estate with a new 5,900 sq. ft. show room, office, and repair facility, plus service bays for up to six RVs. This is an established business with repeat customers. It currently employs 8 full time staff and 4 seasonal, part-time workers. The company is located in an attractive rural setting about 30 minutes from a major city with several parks and campgrounds within a 30 mile radius. The dealership operates with state-of-the-art customer management software and great equipment.
Products include several leading RV brands as well as a wide selection of used RVs. The service business has grown significantly since the new facility was built and with a little marketing can grow even more. The dealership sells over 200 units a year. Price includes all assets of the business including real estate, furniture, fixtures, equipment and all RV and parts inventory. The inventory is valued at approximately $1.6 million. The real estate was recently appraised at $850,000.
2016 revenue is $4.3 million. Adjusted EBITDA is $622,000.
Asking Price is $4.3 million (includes real estate and RV inventory).
Several floor plan companies are available to finance the buyout of the seller’s current new inventory (approximately 100 units at $1.6 million). Seller may be willing to finance the purchase of the used inventory depending on the buyer’s experience and other terms of the deal.
For more information contact Rich Jackim at rjackim@jackimwoods.com or (224) 51305142.
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