Open Road also makes minority investments in concessions, as was the case with Pritchard Cos., A 108-year-old family business now in its fifth generation.
CEO Joe Pritchard said his company has been in talks with Open Road since late 2019 following a family reunion on the future of his business and the industry. “We looked on the horizon to see the changes we were going to adopt in our industry and decided to seek out a financial partner to help us fund this growth,” said Pritchard. “But we just didn’t want to include capital, as we would say. There is a lot of capital on the streets now and then, but we were looking for a strategic partner who had the same vision as us.”
He said they found this at Open Road.
Pritchard said the company has seven franchised dealerships in Iowa that focus on commercial and fleet sales.
Over 85 percent of her income is generated from the commercial side, and she also operates a fleet management finance company.
Pritchard said the minority position with a partner was also attractive.
“We don’t want to give up control of the family business,” he said.
For Open Road, business activity was attractive, Batchelor said, adding that its partnership helped provide lower financing rates to Pritchard Cos.
“All the money that we put in has gone on the balance sheet and that gives them the floor plan line of credit that I think allows them to eventually quadruple sales,” Batchelor said.
Pritchard Cos. COO Angela Pritchard Spiteri, who is in the fifth generation working in the family business with two siblings, said the Open Road partnership not only gives them “third-party eyes on the business” but will help them in their transition over time from one generation owner to multiple owners.
“Our goal is how to learn a lot about what we want the business to become, to set up a growth path that allows us to get there and gives us, again, options at the end of the day. this path, ”she said. noted.