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  "documentTitle": "Ritchie Bros. Auctioneers (RBA)",
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      "text": "IAA and RBA North American Locations",
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      "text": "In fiscal year 2021, IAA generated free cash flow of $323 million and returns on invested capital equivalent to 19%. RBA generated free cash flow of more than $250 million over the same period with an ROIC of 12.3%.(1)",
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      "text": "IAA has 210 U.S. locations which are permitted and zoned for regulatory purposes. RBA has 64 U.S. locations.",
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      "text": "IAA’s asset light business model has limited inventory and re-marketing risk. It requires minimal working capital, resulting in high free cash and ROIC.",
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      "text": "Highly Complementary, Attractive Business Models",
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      "text": "The salvage vehicle industry has several attributes that insulate the industry from new participants entering the market, including: deep customer relationships with insurance carriers, a scaled network of global buyers, complexity of navigating regulatory title processes across 50 states and multiple countries, and, most importantly, the real estate network.",
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      "text": "RBA’s asset light model derives 65% of its revenue from auctions and marketplaces, 20% from ancillary services and 15% from at-risk inventory sales.",
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      "text": "RBA is the leader in the global used equipment market, which has ~$300 billion of gross transaction values annually. Auction channels account for about 10% of that market and RBA has an 18% market share.",
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      "text": "The real estate piece of the equation is nearly impossible to replicate given the cost associated with attempting to acquire the real estate needed to compete and the fact that IAA and RBA have 40-year and 65-year respective head starts.",
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      "text": "Source: Company filings, (1) Ancora estimate",
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      "text": "IAA AND RBA OPERATE IN MARKETS WITH HIGH BARRIERS TO ENTRY AND HAVE COMPLEMENTARY, ATTRACTIVE BUSINESS MODELS",
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