Reasons to invest in the project:
• 2x to 6x: Unlocking Value in Marine Dealership Market
• $10B Marine Market Ripe for Professional Consolidation
• 30 Dealerships, One Vision: Marine 7's Growth Strategy
• Ready-to-execute acquisition strategy for rapid growth
Project Description:
Marine 7 Fund presents a unique opportunity to participate in the consolidation of Australia's fragmented marine dealership industry. Operating in a $10.12 billion market that grew 5% in 2023-24, Marine 7 targets the acquisition of up to 20 profitable East Coast dealerships at attractive multiples.
Our strategy focuses on transforming independently operated, family-owned businesses into a professionally managed network spanning New South Wales, Queensland, and Victoria. By acquiring profitable dealerships at or below 2x earnings and implementing sophisticated management and operational systems, Marine 7 aims to create significant value through economies of scale and operational efficiencies.
The fund's target exit multiple of 6x+ represents an opportunity to capitalise on the arbitrage value inherent in transitioning from individual ownership to a corporatised structure while benefiting from the robust fundamentals of Australia's boating industry, where 1 in 10 Australians hold boat licences and recreational boating continues to grow in popularity.
• Total industry turnover of $10.12 billion (2023-24)
• 5% year-over-year growth
• Over 2,000 businesses operating in the recreational marine sector
•816 dealerships across SA, NSW, QLD, and VIC, with combined market value of $2.55 billion
Investment Strategy
Marine 7 Fund proposes a strategic consolidation of up to 20 boat dealerships along Australia's East Coast, focusing on:
• Target markets: New South Wales, Queensland, South Australia and Victoria
• Individual dealer profile: Operations generating approximately $500,000 in annual profits
• Acquisition multiple: Target of 2x earnings or below
• Exit strategy: Targeting 6x+ multiple through operational synergies and scale benefits
Value Creation Drivers
1. Operational Efficiencies
• Centralised management and governance structure
• Standardised operational procedures
• Consolidated purchasing power
• Shared resources and expertise
2. Market Advantages
• Strong industry fundamentals, with 1 in 10 Australians holding boat licences
• Growing market with 970,000+ registered boats
• 75% of businesses are small, family-owned operations, presenting consolidation opportunities
• Robust recreational boating sector (32% of activities)
3. Strategic Benefits
• Geographic diversification across three major markets
• Enhanced bargaining power with manufacturers
• Improved customer service through standardised processes
• Technology and systems optimisation
Financial Overview
• Target Portfolio: 20 dealerships
• Average Annual Profit per Dealer: $500,000
• Total Portfolio Profit Potential: $15 million
• Entry Multiple: 2x earnings
• Target Exit Multiple: 6x+ earnings
• Potential Value Creation: 3x+ initial investment
Market Validation
• Strong industry employment (27,500 direct employees)
• Diverse revenue streams across new boats (15%), used boats (15%), and services
• Growing trend in recreational boating activities
• Stable regulatory environment with established licencing system
Risk Mitigation
• Phased acquisition approach
• Focus on profitable, established dealerships
• Implementation of professional management structure
• Standardisation of operations and reporting
• Geographic diversification across multiple states
