Boating Industry

October 2015

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22 | Boating Industry | October 2015 www.BoatingIndustry.com [ 2015 Movers & Shakers ] AUSTIN SINGLETON, CEO OneWater Marine Holdings • Buford, Ga. If the fi rst year of OneWater Marine Holdings is any indication, the marine dealership landscape could look drastically different in the next few years. Formed in September 2014 by the merger of Singleton Marine Group and Legendary Marine, OneWater Marine Holdings has ambitious plans and has already acquired three additional dealerships this year: American Boat Bro- kers, Captain's Choice Marine and Rambo Marine. The company has built a model that is designed to give dealership principals an exit strategy, said CEO Austin Singleton. "We see a maturing dealer network across the board, no new blood coming in, no succession planning for the majority of dealers," he said. "Some of them might say that they have it, but they don't and it's very evident." Combine that with the barriers to entry – fl oorplan capital requirements, territory restrictions, the expense of property, the cyclical nature of the industry – and it's diffi cult to fi nd buyers for those looking to sell. "The timing might not be right today, but the thought behind it is that every day from today going forward increases the chance that the time is right," Singleton said. "We feel that we can offer a very at- tractive way for somebody to exit on their timing." The OneWater model is built on the idea that the principal can stay with the dealership if he or she wants to, continuing to work, but eliminating the risk and headaches of ownership. "We lift the burden of the majority of the things in the business that they don't like today," Singleton said. "Most of your entrepreneurial boat dealers love the customer interaction, the excitement of being a dealer, seeing people enjoy the water. They don't like dealing with fl oor- plan companies, co-op, HR, receivables and payables -- all the stuff that's come over time that makes doing business harder." If someone starts talking about build- ing a large network of dealers, it's natural to think of MarineMax. OneWater has watched and learned from its successes and challenges. The most significant differences between the two models are branding and product. OneWater plans to continue to oper- ate dealerships under their existing names rather than rebrand to one corporate name. "Nobody in Dallas knows who the heck Singleton Marine Group is, but they know Phil Dill Boats," Singleton said. "There is an enormous amount of brand loyalty for dealerships that have been in local markets for a long time so we're leaving that branding in place." On the product side, OneWater will not be focused on a single brand, but rather wants to align itself with the best two, three or four brands in four pedestals: saltwater, runabout, aluminum pontoon and competitive ski boats. Although the company's acquisitions have thus far been focused in the Southeast, One- Water plans to continue to grow to other regions, with an emphasis on the Midwest, Canada, Southeast and Florida. "The fi rst thing we're looking for is peak-performing dealers," Singleton said. "We're not looking to go and buy somebody that needs a lot of work and a turnaround." While there is a "target list" of dealerships that OneWater has talked to about partnering, the company is also being contacted by an average of two dealerships a week looking to sell. OneWater has a list of about 35 dealerships the company is in discussion with, but Single- ton said the company is going to take its time adding to its holdings. "We're going to be very strategic on the speed that we go at," he said. "A lot of it has to do with the quality of back offi ce of the dealerships that we're looking at. The stronger the dealership is, the easier it is to fold in." That means a pace of about four a year. Integrating more than that could be challenging as the company is still growing north of 20 percent a year organically. The biggest challenge has been getting the dealerships running on one DMS, in this case Lightspeed, plus the company's own system. That process is just getting wrapped up for the recent acquisitions. The reaction of the industry to OneWater has been "reserved optimism" as manufacturers and dealers are unsure exactly what to make of the effort. Companies are naturally concerned about protecting brands and territories as OneWater grows. "They don't understand and when you don't understand stuff it makes people fearful," Singleton said. "Once they sit back and look at it … it gives them a little better feeling." "We lift the burden of the majority of the things in the business that [owners] don't like today." — Austin Singleton

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