IAA is a leading global marketplace to buy and sell total loss, damaged and low-value vehicles. Supported by industry-leading technology and innovation, IAA’s solutions focus on maximizing the value of vehicles sold through its multi-channel auction model and shortening the selling cycle overall. Key investment highlights include:
- Solid organic and inorganic growth opportunities
- Aligned with largest, fastest-growing insurance companies and focused on penetrating regional and local carriers
- Smart, cost-effective expansion or entry into new markets through strategic acquisitions
- Attractive profitability and margin profile
- IAA derives substantial operating leverage from its low-capital-intensive model
- Strong margins with expansion potential through greater scale, operating efficiencies
- Strong cash flow generator
- Consistent history of generating strong cash flow as a result of attractive gross margins, low capex requirements and the ability to leverage corporate infrastructure across multiple locations
- Adjusted EBITDA increased by 7.5% to $411.7 million in fiscal 2019
- Significant barriers to entry
- Strong foundation built over 35 years in the business are prohibitive to new market entrants
- Broad industry footprint provides extensive customer reach and vehicle management resources
- Currently operates 179 sites across the US and Canada, and 14 sites in the United Kingdom
- Longstanding, diverse and fully integrated relationships with national insurers, dealerships, rental car companies, fleet lease companies and charitable organizations
- Large, diverse and global buyer base
- Flexible and efficient operating model
- Low maintenance capital expenditures and working capital requirements provide high levels of strategic and financial flexibility
- Recent spinoff from KAR Auction Services provides enhanced decision-making ability and flexibility to quickly capitalize on potential opportunities
- Technology and innovation focus creates clear competitive advantages
- Unique multi-channel digital auction model allows customers to purchase vehicles when, where and how they want.
- Transformational innovation process creates superior buying experience
- IAA places significant focus on leveraging cutting-edge technology
- Experienced managed team with successful track record
- Executive leadership has 200+ combined years of expertise in insurance and remarketing industry
- CEO John Kett has served in various executive roles at IAA for 17 years