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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

Key investment risks :

When considering purchasing or investing in a business, it's important to be aware of the potential risks involved. It is advisable to consult with your accounting and legal advisors before entering into any contracts. While we strive to exercise due diligence, we cannot guarantee the accuracy of the project. It is essential that you verify all financials and legal agreements before proceeding.