2027–2033 Operating Plan & Capital Returns — Stevens Automotive Partners
The Opportunity
Rare Investment Opportunity: Acquire a Coveted Chevrolet Franchise — 21.2% Projected LP IRR
Equity Raise
Stevens Automotive Partners (SAP) is seeking $6.50M of total equity to acquire a proven Chevrolet franchise with deep community roots and OEM standing.
2.32× LP MOIC
The model projects a 2.32× LP MOIC (Multiple on Invested Capital — total LP proceeds divided by LP capital invested) (versus a 2.25× cap input), with total projected LP proceeds of $11.608M through ongoing distributions and capital events.
19.5% Internal Rate of Return
We are acquiring at approximately 5.0× earnings on a $7.00M goodwill purchase price, with meaningful runway for EBITDA expansion from $1.23M in 2027 to $1.75M by 2033.
The dealership's financial profile reflects a well-run operation with strong unit economics. The 2027–2033 operating plan projects EBITDA growing from $1.23M to $1.75M, supported by a vehicle volume ramp from 461 to 670 new units annually and fixed-ops productivity improvements. The minimum modeled cash balance is $0.613M with no revolver drawn — demonstrating strong liquidity throughout the ownership period and supporting consistent cash returns to LPs.
Chevrolet of Milford — Revenue by Department
Total revenue declined from $72.3M in 2023 to ~$49.8M annualized in 2026 — a ~31% decline driven primarily by new and used vehicle softness.
*2026 = Jan–June actual ×2. This deterioration in revenue represents the acquisition opportunity — SAP's operating plan targets a return to growth beginning in 2027.
The Brand That Sells Itself
Chevrolet is America's most awarded, most dependable, and most iconic automotive brand — 115 years of proven consumer trust.
Founded 1911
America's most enduring automotive brand
U.S. Automaker in 2025
General Motors
Consecutive #1
Full-size SUVs
Consecutive #1
Full-size pickups
Corvette 10Best
Car and Driver honoree
J.D. Power 2024–2026
America's Most Awarded Brand for SUV Dependability. Tahoe named America's Most Dependable Large SUV four years running.
2026 Car and Driver 10Best
Corvette, Trax, Tahoe & Suburban all named to the prestigious 10Best list. Corvette: 27-time honoree.
Best Sales Year Ever
Chevrolet SUVs achieved their best sales year on record in 2025. 2026 Bolt named Car and Driver EV of the Year.
Nathaniel Stevens
The dealership isn't a footnote to Nathaniel's technology career. It's the source code. As a teenager working at Stevens Ford, he ran internet sales — and that observation became the foundation for a $342M exit. Now he's come back to run the original.
Stevens Ford
Established in Milford, CT. Third generation of the Stevens family in automotive.
Yodle Exit
Co-founded at Wharton, acquired by Web.com in 2016. Served 50,000+ businesses nationwide.
Opcity Exit
Portfolio company acquired by News Corp / Move, Inc. in 2018.
Portfolio Cos.
Through Stevens Ventures. Focus: Automotive, AI, SaaS, FinTech, Local Commerce.
Education
The Wharton School, University of Pennsylvania.
Founder
Founded Yodle.com with ~$30K borrowed from his father. Built it into a national platform serving 50,000+ businesses before a $342M acquisition by Web.com in 2016.
Investor
Managing Director of Stevens Ventures. Backed Opcity ($210M exit), and 10+ companies across tech, fintech, and mobility. Invests with an operator's perspective.
Operator
CEO & Dealer Principal of Stevens Auto Group. Returned after his father's passing to lead the third-generation family business — not to preserve it, but to transform it with technology and modern operations.
As featured in: BusinessWeek · The New York Times · Bloomberg · Knowledge@Wharton · Texas Public Radio · InformationWeek
Operating Performance
The dealership's financial profile reflects a well-run operation with strong unit economics. EBITDA grows from $1.23M in 2027 to $1.75M by 2033, driven by vehicle volume ramp and fixed-ops productivity improvements.
Modeled EBITDA
$1.23M → $1.75M
42% EBITDA growth from 2027 to 2033.
New Vehicle Volume
461 → 670 Units
Annual retail units ramp over 36 months, reaching full run-rate in 2030.
Fixed-Ops Productivity
1.89 → 2.05 hrs/RO
Customer-pay service hours per repair order improve over the 24-month ramp.
Parts Gross Margin
35% → 36%
Margin improves as fixed-ops productivity scales from 2027 to 2033.
Model EBITDA is before non-floorplan interest and goodwill amortization. New / used front-end PVR: $1,800 / $2,000. Used/new volume ratio: 1.0×. Figures in USD millions.
Operating Plan: Vehicle Growth & Fixed-Ops Productivity
Vehicle volumes ramp from 461 to 670 new units over 36 months while service and parts productivity improve — Base / Base case assumptions, 2027–2033.
Projected New-Vehicle Retail Units
Base Operating Drivers
Customer-pay service hours. Full-year new sales reach 670 in 2030; the ramp rate and annual sales are different measures. PVR = profit per retail vehicle. These are operating assumptions, not verified outcomes.
Operational Upside Opportunity
Recent industry dynamics — including inventory normalization, labor inefficiencies, and underutilized service capacity — have created a gap between current and peak earnings potential. SAP sees a clear and executable path to close that gap.
Staffing Inefficiencies
Margin compression driven by suboptimal technician utilization and overtime costs represents a near-term, recoverable earnings opportunity.
Return to Peak Levels
Management believes the dealership can return to prior peak operating performance as inventory stabilizes and process discipline is introduced.
Industry Tailwinds
Early signs of operational stabilization across the broader U.S. dealership landscape support the thesis for improved earnings trajectory.
Investment Summary
Key Terms — 2027–2033 Model (Base / Base Case)
2.32× LP MOIC
Projected LP MOIC under the current security waterfall. Total LP proceeds of $11.608M on $5.00M of LP capital over the investment period.
21.2% LP IRR
Projected LP IRR under the current waterfall. GP projected IRR is 21.4%. Operator receives $0.311M in total proceeds.
Long-Term LP Returns
The model projects distributions and capital events through 2033, with LP returns driven by ongoing dealership cash flow — subject to a $600K minimum cash threshold.
$6.50M Total Equity
$5.00M LP equity + $1.50M GP equity. Combined with $3.25M blue-sky loan (8.0%, 25-year am.) and $6.65M inventory notes for a total funding requirement of $16.40M.
Sources & Uses of Capital
Total Opening Funding Requirement: $16.40M — Fully Balanced, $0 Funding Gap
Sources of Capital
Uses of Capital
8.0%
Blue-sky loan rate (25-year amortization)
$0
Funding gap — fully balanced structure
$1.39M
Opening cash reserve at close
Inventory financing included in transaction funding view. Figures rounded; USD millions.
Debt Financing Terms
Illustrative Senior Debt Structure — $3.25M Blue-Sky Loan + $6.65M Inventory Notes
Interest Rate
8.0% fixed rate on the blue-sky loan, consistent with current senior lending market for automotive franchise acquisitions.
Amortization
25-year amortization schedule on the blue-sky loan. Inventory notes are separately structured as floor-plan financing.
Blue-Sky Loan
$3.25M senior secured loan against franchise goodwill value of $7.00M, representing a conservative ~46% LTV on the blue-sky asset.
Inventory Notes
$6.65M of floor-plan inventory financing, standard for automotive dealership operations. Included in total transaction funding view.
Blue-Sky Loan
Inventory Notes
Total Debt Financing
Ending Recap Debt at Month 84
Cash Flow Timeline
The investment is structured to deliver strong near-term cash yields while building toward sustained distribution growth. Net income and operating distributions grow steadily across the projection period through December 2033.
2027
Net Income: $0.23M | Distributions: $1.02M
Vehicle ramp begins (461 units). EBITDA: $1.23M. Opening year — establishing operations and service productivity baseline.
2028
Net Income: $0.39M | Distributions: $1.16M
Minimum modeled cash of $0.613M occurs in February 2028. Vehicle volume grows to 569 units.
2029
Net Income: $0.53M | Distributions: $1.49M
Vehicle volume reaches 638 units. Fixed-ops ramp (24 months) completes. EBITDA: $1.45M.
2030–2031
Net Income: $0.59–0.60M | Distributions: $1.41–1.42M
Full vehicle volume of 670 units achieved. EBITDA stabilizes at ~$1.70M. Steady-state operations.
2032–2033
Net Income: $0.62–0.63M | Distributions: $1.44–1.33M
EBITDA reaches $1.75M by 2033. Recap capital event at Month 74 (Feb 2033). LP distributions continue through December 2033 with projected cash balance of $0.701M by December 2033.
Automotive Operational Improvement Model
While our base underwriting assumes stable baseline performance at current levels, SAP actively targets upside through structured operational improvements. Our playbook draws on best-in-class dealership management practices and has been validated across comparable franchise acquisitions. The following case study illustrates the earnings potential when operational levers are systematically applied to a franchise of this profile.
Operational Impact Potential
EBITDA Growth Levers Across the Dealership
Service Dept. Optimization
Increasing repair order (RO) count per technician and reducing service cycle times drives immediate, high-margin revenue improvement.
Technician Productivity
Improving flat-rate hours per tech per day through scheduling, training, and compensation structure refinements captures significant latent capacity.
Used Inventory Pricing
Implementing data-driven pricing discipline and faster turn targets reduces aged inventory costs and improves gross margin per unit.
F&I Penetration
Increasing finance and insurance product attachment rates through better menu presentation and product training is a high-ROI, low-cost improvement.
LP Proceeds & Capital Returns
The current waterfall delivers $11.608M in total LP proceeds on $5.00M of invested capital — a 2.32× MOIC and 21.2% IRR through projected distributions and capital events.
LP Proceeds Build
Operating Distributions — $6.560M
Cumulative quarterly distributions from dealership cash flow, subject to a $600K cash threshold, accruing across the investment period.
Priority Top-Up — $4.690M
Cumulative LP priority return payments ensuring investors receive their preferred return before GP participation.
Residual Share — $0.358M
LP's additional share of residual liquidity beyond the 2.25× MOIC threshold, bringing projected cumulative returns to 2.32×.
Ownership Structure & Waterfall
LP = limited partner investor; GP = general partner / Nate. Ownership shifts materially after the modeled recap event at Month 74 (February 2033).
Pre-Recap Ownership
Post-Recap · 5% Operator
Terms Illustration · 10% Operator
Month 12
Operator start / buy-in input. 5% options vest over 5 years; actual buy-in is 0%.
Month 74 · Feb 2033
Recapitalization event. Ownership shifts from pre-recap to post-recap structure.
Month 84 · Dec 2033
LP priority top-up distribution. Projected cash balance: $0.701M. Ending recap debt: $1.90M.
Valuation Sensitivity Analysis
Illustrative dealership valuation across EBITDA performance scenarios and market multiples. Figures in USD millions.
Dealership Value by EBITDA % of Plan × Market Multiple (USDm)
$4.68M
Base point (4.5× / 100% of plan). Derived from linked model anchors.
$6.58M
Terminal proceeds before $1.90M recap-debt deduction (live waterfall).
$1.75M
2033 modeled EBITDA (the plan denominator for the sensitivity).
Operational Improvements: Best-in-Class Focus
People, Process & Customer Experience as Value Drivers
Employee Retention
Redesigned compensation structures and career path clarity reduce costly technician and sales staff turnover — one of the most impactful margin levers in retail automotive.
Service Throughput
Workflow optimization, loaner vehicle management, and scheduling technology increase service department capacity and reduce customer wait times.
CSI / NPS Elevation
Enhanced customer satisfaction scores directly protect OEM incentive income and drive repeat business and referral volume — both critical to long-term profitability.
Overhead Reduction
Systematic vendor contract reviews, insurance rebidding, and elimination of redundant costs are expected to yield immediate SG&A savings with no revenue impact.
Financial Strength of the Platform
Strong Baseline Profitability
The dealership enters the acquisition with ~$2.0M in net income and proven EBITDA margins, providing immediate debt service coverage and investor distributions.
Rapid De-Leveraging
Strong free cash flow conversion enables the business to pay down debt materially within the first 3–5 years, reducing financial risk and unlocking refinancing optionality.
Early Capital Return Potential
A refinancing event in Years 3–5, supported by de-levered balance sheet and improved EBITDA, could return significant investor capital well ahead of the full underwrite period.
Operational & Financial Upside Identified
In collaboration with experienced operator leadership and SAP's internal operational resources, we have identified multiple concrete, executable drivers of EBITDA expansion. These improvements are not speculative — they are grounded in industry benchmarks and operational best practices observed across best-in-class Chevrolet and GM franchise operators nationwide. Our underwriting assumes zero operational improvement; everything below represents upside to the base case.
Operational Efficiency Improvements
Service Department as the Primary Value Creation Engine
Increase RO Count
Optimizing scheduling, service lane intake, and advisor capacity to handle a greater volume of repair orders per day without capital expenditure.
Technician Utilization
Identifying and closing the gap between available and billed flat-rate hours — a direct and immediate improvement to service gross profit.
Reduce Overtime
Restructuring technician and service advisor shifts to eliminate unnecessary overtime expense while maintaining or improving throughput and customer service levels.
Staffing & Retention Strategy
The Problem
High employee turnover — particularly among technicians and sales staff — is one of the most destructive and underappreciated cost drivers in automotive retail. It erodes productivity, inflates training costs, damages customer relationships, and suppresses CSI scores.
Current State
Industry average technician turnover exceeds 40% annually — representing a significant drag on performance and profitability.
The SAP Solution
Improved Hiring Processes
Structured onboarding and culture-first recruiting to attract and retain top talent in competitive labor markets.
Optimized Compensation
Transparent, performance-linked pay structures that reward productivity and incentivize long-term retention.
Reduced Turnover
Lower attrition directly translates to higher productivity per employee, reduced training costs, and improved gross profit per RO.
Revenue Enhancement Initiatives
Driving Top-Line Growth Through Process & Technology
BDC & Lead Conversion
Optimizing the Business Development Center's follow-up cadence, scripts, and CRM utilization to improve lead-to-appointment and appointment-to-sale conversion rates — capturing revenue that currently falls through the cracks.
F&I Attachment Rates
Increasing penetration of finance, warranty, GAP, and other ancillary products through enhanced product training, menu selling discipline, and lender relationship optimization.
Inventory Turn & Pricing
Implementing market-based dynamic pricing and tighter age-out thresholds for used vehicle inventory, improving gross per unit while reducing floor plan carrying costs.
Vendor & Cost Optimization
Structural Cost Savings with Zero Revenue Impact
Scalable Vendor Relationships
Renegotiating existing vendor contracts and consolidating suppliers to leverage volume and achieve more favorable pricing, service levels, and payment terms.
Insurance & Benefits Cost Savings
Conducting a comprehensive benefits and commercial insurance review. Competitive rebidding across providers is expected to yield immediate, recurring SG&A reductions.
Centralized Purchasing
Introducing centralized procurement protocols for supplies, parts, and services to eliminate redundant spend and ensure consistent cost controls across all operational departments.
Combined, vendor and cost initiatives are expected to contribute meaningfully to earnings expansion in Year 1, with compounding benefits as purchasing scale and negotiating leverage increase over time.
Why Stevens Automotive Partners
Compelling Valuation Entry
Acquiring at ~5.0× earnings — a below-market multiple for a stabilized, cash-flowing Chevrolet franchise with meaningful operational upside.
Strong Cash Yield from Day One
25–30%+ cash-on-cash distributions in Years 1–3, supported by durable fixed operations revenue and conservative debt structure.
2.25× MOIC + Perpetual Carry
Structured returns with a clear path to full capital recovery, followed by a 20% perpetual distribution for ongoing, long-term income generation.
Experienced Operator Alignment
SAP's managing partners bear lender guarantee obligations — ensuring full alignment of sponsor and investor interests throughout the investment lifecycle.
Chevrolet Franchise Purchase Deal