Open Road additionally makes minority investments into dealerships, which was the case with Pritchard Cos., a family-run, 108-year-old enterprise now into its fifth era.
CEO Joe Pritchard mentioned his firm had been speaking with Open Road since late 2019 following a household assembly about the way forward for its enterprise and the business. “We looked out on the horizon to see the changes that we were going to embrace in our industry and decided to search for a capital partner to help us fund that growth,” Pritchard mentioned. “But we just didn’t want to include capital, as we would put it. There’s plenty of capital on the streets right now and back then, but we were looking for a strategic partner that had the same vision that we did.”
He mentioned they discovered that in Open Road.
Pritchard mentioned the corporate has seven franchised dealerships in Iowa that target business and fleet gross sales.
More than 85 % 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 associate additionally was enticing.
“We don’t want to give control up of the family business,” he mentioned.
To Open Road, the commercial-focused enterprise was interesting, Batchelor mentioned, including that its partnership has helped to supply decrease financing charges to Pritchard Cos.
“All the money we put in went onto the balance sheet and it gives them the floorplan credit line that allows them to, I think, to eventually quadruple sales,” Batchelor mentioned.
Pritchard Cos. COO Angela Pritchard Spiteri, a part of the fifth era working within the household enterprise together with two siblings, mentioned the Open Road partnership not solely offers them “third-party eyes on the business,” however will assist them as they transition over time from a single-generational proprietor to a number of house owners.
“Our goal out of this is how to learn a lot about what we want the company to become, to put a growth path in place that allows us to get there and gives us, again, options at the end of that pathway,” she mentioned.