Motorcycle Capital Company Funding
The motorcycle market, which includes ATVs and scooters, has been steady in the U.S. at 2,000,000 + new units per year.
Dealers also sell personal watercraft and snowmobiles, as well as used models of all. It is a $25 billion industry in the United States that has attracted the attention of major banks and finance companies. The product offering, which has become very reliable, is very diverse and enjoys a wide acceptance by the public.
Motorcycle Industry Revenue
Typical Harley-Davidson dealers generate about $15M, while typical non-Harley dealers generate $8M revenue per year.
Industry norm net profits (EBITDA) are 5% for non-Harley and 8% for Harley dealerships. Dealers using Lemco operating protocols are 7.25% and 10.12% respectively. With the full utilization of established best practices the net increases further to 9.5% and 14.2% on average sales of $10 & $17M.
The MCC Difference
Ed Lemco continues to be a consultant to the industry’s major consolidators to define specific policies, procedures and protocols to raise the bar on industry standards.
Ed is also very active in constantly updating the step-by-step training and review processes required. We have been able to provide key resources that allow daily monitoring to client dealerships and now have the further ability to provide immediate direction to future MCC projects.
Buying and Selling Motorcycle Dealerships
The MCC Management Committee is composed of seasoned dealers who reside on St. Croix. The opportunity for MCC is driven by the fact that many dealers desire to sell their businesses to a son, daughter or protégée, but find the value of the business is beyond their ability to buy.
Even if the vendor is willing to carry back a contract, the amount of indebtedness is outside of OEM equity guidelines and disqualifies the new owner from floor plan financing.
MCC has developed the contracts and processes to fund an option for the new owners. MCC also acquires the property and leases back to the operating entity at a very favorable rate. Much of this is accomplished by our use of off balance sheet funding that we have been able to demonstrate as reliable to large finance companies.
For additional information, please contact Ed Lemco or Karen Rasmussen (340-719-8591) or Laura Lemco (303-697-8514) — or use our contact form.
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Motorcycle Industry Consulting Services
No. 217 Strand Street
Frederiksted, St. Croix USVI 00840
340-719-8591 Main Office
303-697-8514 Laura Lemco