Western Automotive Acceptance Corp

Western Automotive Acceptance Corporation

Acquisition Date:

Divestiture Date:

Held in Portfolio:

Purchase Price:

Sales Price:

% Gain:

Annualized R.O.R.:

Industry:

S.I.C. Codes:

May 9, 1996

June 30, 1997

13 months

*

Loan Brokerage Services

6163

Portfolio Analysis & Discussion

Referral

The acquisition of Western Automotive Acceptance Corp. (and its affiliate- Automotive Income Management, Inc. see analysis) came about as a result of InAmerica’s then newly elected president’s recommendation for acquisition. Having served as Automotive Income’s attorney for a number of years, and having intimate knowledge of the owners‘ dispute as to withdrawals of capital.

W.A.A.C. was actually a pass-through company that was employed by AIM Direct to be the liaison between the new car customer that had responded to an AIM Direct mail solicitation, and the actual financing entity that would provide the financing for the new or used vehicle.

While this might seem as a useless redundancy to most mortals, it is completely within the normal practices employed in the new car dealerships to sell more cars. No more than an accounting function, the actual expense of W.A.A.C. was carried as a cost center on the AIM Books. It could have been a FInance Department within AIM, but it had always been operated as a separate entity.

OF course, when AIM Direct sold, W.A.A.C. went with it.

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