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Open Highway Capital steers Bain funds into dealerships

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Open Highway additionally makes minority investments into dealerships, which was the case with Pritchard Cos., a family-run, 108-year-old enterprise now into its fifth technology.

CEO Joe Pritchard mentioned his firm had been speaking with Open Highway since late 2019 following a household assembly about the way forward for its enterprise and the trade. “We seemed out on the horizon to see the adjustments that we have been going to embrace in our trade and determined to seek for a capital companion to assist us fund that development,” Pritchard mentioned. “However we simply did not wish to embrace capital, as we might put it. There’s loads of capital on the streets proper now and again then, however we have been on the lookout for a strategic companion that had the identical imaginative and prescient that we did.”

He mentioned they discovered that in Open Highway.

Pritchard mentioned the corporate has seven franchised dealerships in Iowa that concentrate on business and fleet gross sales.

Greater than 85 p.c of its income is generated from the business facet, and it additionally operates a fleet administration finance firm.

Pritchard mentioned the minority place with a companion additionally was enticing.

“We do not wish to give management up of the household enterprise,” he mentioned.

To Open Highway, the commercial-focused enterprise was interesting, Batchelor mentioned, including that its partnership has helped to offer decrease financing charges to Pritchard Cos.

“All the cash we put in went onto the stability sheet and it provides them the floorplan credit score line that permits them to, I feel, to finally quadruple gross sales,” Batchelor mentioned.

Pritchard Cos. COO Angela Pritchard Spiteri, a part of the fifth technology working within the household enterprise together with two siblings, mentioned the Open Highway partnership not solely provides them “third-party eyes on the enterprise,” however will assist them as they transition over time from a single-generational proprietor to a number of homeowners.

“Our objective out of that is methods to be taught so much about what we would like the corporate to change into, to place a development path in place that permits us to get there and offers us, once more, choices on the finish of that pathway,” she mentioned.

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