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INVESTORS

MONRO’S ACQUISITION PROGRAM

When you decide to sell your business, you want to make sure that you choose a highly regarded buyer who has expert knowledge and experience in the Tire and Automotive Service industry, along with a proven track record of successful acquisitions.

For more than 60 years, Monro has been that choice for 100+ great companies, like yours. We are proud to say that Monro has the financial breadth, seasoned industry professionals, national geographic presence, along with the marketing and logistic advantages as one of the nation’s oldest and largest Tire and Automotive Service providers, to be the ideal choice when you are ready to sell your business.


A PROVEN PROCESS FOR SUCCESS


WHAT MONRO LOOKS FOR IN A COMPANY

Our ideal candidates are high-quality, customer-focused retail Automotive Tire, Automotive Service and Tire & Service companies. We will also consider retail companies with wholesale, commercial and retread operations as part of their overall business.

Consistent volume and margins:
Obviously, we prefer companies that come with a long track record of profitable operations and have a bright future for growth potential. However, we understand the uncertainties of the business world, especially in this day and age. We are confident that, no matter your current situation, we can craft a deal that will work to our mutual interests.

Good quality assets:
Well-maintained buildings and equipment, along with staying current with today’s automotive technology, show how much you’ve re-invested in your business. We know what it takes and your efforts will not go unnoticed.

We are a strong, long-term tenant:
We are comfortable entering into direct lease agreements for properties owned by your business or assuming lease agreements for properties leased by your business. In each case, we prefer lease terms of at least 10 years (with respect to assumed leases, this term can include exercisable lease options). Business-owned properties are a plus, since lease terms can be adjusted to meet our mutual requirements. You can hold the lease as landlord and enjoy a long-term, dependable income stream or sell to other investors. With Monro as your tenant, your property instantly becomes more valuable. In fact, we’re what the real estate industry calls a “credit tenant.” Our financial stability and $2 billion market capitalization makes Monro leases highly attractive to real estate investors. Or, profit from the investment yourself. History shows that we don’t buy companies to flip them in three to seven years, but to expand our footprint and operate auto service and tire outlets. We’re buyers, not sellers! A lot of acquirers flip the companies they purchase within 3 to 7 years; who ends up with your leases then? Will they be a “Credit Tenant” like Monro? This could be a roll of the dice that you have no control over going forward, especially in uncertain times. We’re also flexible. In instances that fit common interest, we can purchase the owner’s real estate investment in a separate transaction.


LET’S GET STARTED!

From the first handshake to the closing of the deal, our goal is to make the acquisition process easy and beneficial for all. Call us today and let’s start the conversation!

We like to start with an informal phone conversation where we can get to know each other and answer each other’s initial questions.

At Monro, we pride ourselves on having the utmost discretion during the entire process, and we back it up with a very neutral non-disclosure confidentiality agreement that protects both of us equally.

To fully evaluate your business and to reward you with the largest possible valuation, we will ask you to fill out an “Initial Information Request” providing details on your volume, margins, expenses and assets. This will include annual financial statements for the past two years, as well as a year-to-date report including balance sheets, income statements, statements of cash flow (with comparatives) and footnotes. We will never ask for information that individually identifies your customers or employees.

We go out of our way to give you the best, most fair and complete valuation possible of your business. In addition, we will not just hand you a number; we will do our best to explain how we came to the valuation and how you might be able to help us refine it.

Whether you’re a “C” corporation, “S” corporation, “LLC” or sole proprietor, our team will structure a deal to benefit your tax situation that is neutral to Monro. Together, working with your accountants or advisors, we will identify the deal structure that will yield you the most after-tax dollars.

The Letter of Intent signifies your acceptance of our offer to move on to the next steps, which include our due diligence and creation of the Asset Purchase Agreement. This letter also specifies a period of time when both parties agree to the exclusiveness of the deal.

During our due diligence, we will work with you to validate and confirm the financial and business information provided to us that our offer was based upon.

Just prior to closing, we will jointly sign the Asset Purchase Agreement. On the day of closing, we will verify the inventory and assets. In the weeks leading up to this, we will work with you to make sure the transaction process goes smoothly for both employees and customers.

A letter from
our CEO

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Meet Our
Acquisition Team

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Information About Monro’s Acquisition Program

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