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Finalist: Vern Buchanan
Founder, CEO Buchanan enterprises
Vernon Buchanan, owner of the 17th largest private automobile dealership in the U.S. and chairman of the Florida Chamber of Commerce, celebrated his 54th birthday on May 8 aboard his 110-foot yacht, "The Entrepreneur," in the Virgin Islands.
As he visited with family and friends and fielded questions from a news reporter via satellite telephone, hundreds of salespeople at his 20 dealerships from Venice to North Carolina sold cars, SUVS and trucks.
"I've never worked one day in a car store," Buchanan says.
Buchanan's company is expected to hit $1 billion in revenue within a few years. He can yacht in the Caribbean with the confidence of a businessman who has placed the right people in the right jobs.
The manager of each dealership has invested at least 25% of his own money to help buy the dealership. Buchanan finances the rest, sets up annual financial goals for the dealership and provides administrative support from his Sarasota headquarters, which includes accountants and lawyers.
"If you don't expect much, you don't get much," he says. "I expect to be the best and the biggest. Some day we'll be No. 1."
Buchanan, the eldest of six children, saw how his parents worked hard to care for their family on their modest income as Detroit factory workers.
After graduating from Cleary College in Ann Arbor, Mich., in 1974, he joined the marketing division at Burroughs Corp. (now Unisys), the same company where his parents worked.
But he had higher aspirations.
With $1,500, he started a printing store. By 1989, when he sold out, American Speedy Printing Co. had grown to 720 shops in 44 states and Canada. The next year, he and his family moved to Tampa.
In 1992, friend Carl Lindell, a longtime Tampa new car dealer, sparked Buchanan's interest in the car business while their families were vacationing together in Alaska, he says.
"He showed me what he was doing," Buchanan says. "It had worked out pretty good for him."
Much of Buchanan Automotive Group's growth comes from the acquisition of under performing dealerships. The company only buys "mismanaged" dealerships in growth markets, he says, adding: "A lot of times the factories will call us. ... People know to call us."
"I'm always looking for the best deals, the best people," he says.
When word comes in that a dealership is for sale, Buchanan meets with the owner, checks out the numbers and tries to work out an agreement. Then his accountants and lawyers close the deal.
On a recent Tampa deal, Buchanan says he heard on a Tuesday the Fowler Avenue Chevrolet dealership was for sale. He met with the owner the following day, Wednesday, and reached an agreement. The deal was completed four days later.
For every 30 dealerships Buchanan considers, he says he probably buys one.
The company owns a mix of import and domestic dealerships, from Ford and Chevrolet to Lexis and Mitsubishi. About 60% of his dealerships sell imports.
The automotive group's biggest challenges are factors outside of its control, Buchanan says, such as rising interest rates and lackluster products built at the factories.
"We try to focus on what we can control," he says, referring to the pre-owned market, or used cars.
Buchanan Enterprises also has business interests in real estate, aviation, investments and a clothing store and spa at St. Armands Circle, now called The Met. He also is looking at geting into the broadcast market.
Stay tuned.
COMPANY STATS
Employees: 2003: 904;
2004: 1,166; 2005: 1,213.
Auto Dealership Revenue: 2002: $486 million; 2003: $592 million; 2004: $757 million. Real Estate Revenue: 2003: $2 million; 2004: $2 million. Dealership Net Income: 2002: $14.9 million; 2003: $16.5 million; 2004: 21.7 million.
Average annual growth: 24.8%
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