RELAY HILL CAPITAL

Specializing in Automotive Repair and Commercial Property

About Relay Hill

Relay Hill is a family office focused on strategic investments into differentiated small businesses and commercial real estate. The mission-driven group has a diversified focus on opportunities across Colorado and Texas

Value

The enterprise has a mission to build community in and around its portfolio of businesses and real estate interests. Social impact is foundational to its investment and operational approach. The group has a belief that ownership of assets comes with a responsibility to stakeholders, including but not limited to employees, customers, vendors, and neighbors

Auto

Relay Hill Auto (RHA) aims to protect INDEPENDENT neighborhood repair shops serving local communities. Branded chains, investor-backed “independent” shops, and dealerships view customers as dollars and cents, while considering employees as a means to an end. RHA, in contrast, works to build multi-generational relationships with FAMILIES. Moreover, the well-being of team members is a top priority as the enterprise offers lifelong careers, rather than a transient job. As the baby boomer generation of shop owners retire, they can feel confident RHA management will build upon the LEGACY of exceptional customer service while investing in innovation and technology.

Real Estate

Properties and structures provide an OPPORTUNITY for commercial activity that ultimately binds a community together. Relay Hill Properties (RHP) is committed to acquiring urban and suburban real estate across Colorado and Texas that is central to the WELL-BEING of a community. Real estate managers have a responsibility to foster greater engagement locally between municipal, business, and neighborhood interests. The organization also recognizes the scarcity of industrial and trade service properties in urban environments. RHP intends to support and invest in the infrastructure critical to RESPONSIBLE entrepreneurial and service activity in residential areas.

Community is the CORE of our mission

Auto

The strength of Relay Hill Auto begins with extraordinary tradespeople who founded generational brands. With excellence and integrity as guiding principles, RHA leads these businesses with an unwavering belief in personnel development and collaborative team culture. The automotive strategy aims to deliver the highest quality of hospitality and service to customers by realizing efficiencies and increasing transparency. This is achieved by leveraging advanced technologies and prioritizing a continuously improving operational model.

The organization believes local businesses should be tailored to their own community such that traditional neighborhood service centers are valued above cookie-cutter national brands. Valuing people over profits is the guiding light of the enterprise. The Relay Hill Cooperative is an innovative opportunity to build a national support network of exceptional locally owned automotive service facilities.

A steady pace yields superior results

Properties

Commercial real property facilitates numerous functions not limited to producing goods, offering services, providing spaces for activities and connectiveness, social functions, as well as other types of commerce

Location

  • Scarcity of commercial properties in high growth CO & TX residential metro areas creates valuation floor
  • Major transportation and infrastructure projects to create transformation to previously overlooked neighborhoods
  • Low-cost land acquisition in “next out” suburban areas allow attractive greenfield opportunities

Property Characteristics

  • Min. of 5K sq. ft. mitigates highest risk segment of small businesses
  • Undervalued land in areas driven by valuation of improvements
  • Class B & C properties possess manageable risk in growing metros

Function

  • Non-discretionary service or product industries benefits from less volatility in economic cycles
  • Realizable synergies from tenant-landlord common ownership
  • Light industrial, service, and product businesses less exposed to environmental concerns

Improvements

  • Brownfield development opportunities can adapt to zoning and demographic changes
  • Highest and best use likely to shift into higher value opportunities
  • Contiguous lots justify substantial curb appeal improvements

Neighborhoods succeed with thriving real property

Social Impact

The enterprise and its team members continues to partner with, identify, and pursue opportunities that contribute to a better world. This is achieved through our core functions as well as philanthropic efforts. There are four major categories of impact for the organization.

 

Transportation Consistent with our core competency, RHA recognizes the challenges faced by many individuals and families start with unreliable transportation. Moreover, vehicle ownership for at-risk communities can be one contributing factor to greater financial independence.
Health Malnutrition, disease, and access to care create barriers for educational pursuits, maintenance of employment, and a healthy lifestyle. These realities perpetuate a cycle of poverty and often times disproportionately impact minority communities and women.
Community Facilitating safety and a voice for everyone in the neighborhoods we service is part of our mission to build community. We value diversity, inclusion, and a healthy debate of ideas. These characteristics advanced connectivity between people and creates greater empathy across society.
Education Knowledge is the key to addressing many of the challenges faced by society. Relay Hill encourages educational pursuits across children, adolescents, and adults. Giving humanity the opportunity to learn and think critically provides not only earning potential, but also an informed citizenry.
Features
  • Independence
  • Priority
  • Sale Process
  • Seller Obligations
  • Transaction Structure
  • Owner’s Legacy
  • Employees
  • Investment Horizon
  • Maintained post-transaction
  • 100% focus on your business
  • Discrete, focused, expedited
  • Support transition then retire
  • Flexible
  • Foundation for growth
  • Prioritized and promoted
  • Long-term
Private Equity
  • Very limited
  • Next transaction/fundraising
  • Army of consultants/lawyers
  • Continue daily operations
  • Rigid
  • Limited priority
  • Viewed as cost
  • 3-5 years
Larger Competitors
  • None
  • Divided across offerings
  • High risk of business disruption
  • Retained with earnout
  • “All or none” approach
  • Eliminated over time
  • Reductions typical
  • Absorbed into business


Relay Hill defines it’s success by its positive impact on society

Our Team

Our team benefits from extraordinary professionals with diverse experiences in management consulting, mergers & acquisitions, executive roles in private and public enterprises, operational and property management, compliance and HR training, and various managerial roles across sectors. The group prides itself on both its’ depth and breath of leadership and knowledge

Shiju Thomas, Founder & CEO

Shiju leads the firm’s strategic mission to build community across its service areas and within its portfolio businesses.  He sources and executes all M&A opportunities both on the business and property sides of the organization.  Shiju is active in daily operations and possesses trade certifications with the industry-leading Automotive Service Excellence (ASE).  Moreover, he represents the organization across numerous local and national networks of industry professionals and entrepreneurs.

Across his career, Shiju has advised, underwrote, or participated in over 100 transactions totaling over $13 billion.  His last six transactions were as an owner-operator-proprietor.  Earlier in his career, Shiju was an investment banker at Lazard (Houston) and JPMorgan (New York City), focused on M&A and debt capital markets.  He currently splits his time between Colorado and Texas.

M.S. in Mineral and Energy Economics, Colorado School of Mines
M.S. in Economics and Management, French Institute of Petroleum – IFP
B.B.A. in Finance, McCombs School of Business, The University of Texas at Austin
B.A. in History & Religion, College of Liberal Arts, The University of Texas at Austin

Thomas Christy, Senior Manager

Tom leads the founding portfolio brand of RHC and continues supporting the strategic and operational direction of the firm.  Tom’s background is in national and international multi-unit operations management.  He began his career in the automotive industry, then spent time in retail sporting goods, consumer electronics, finance, and commercial and residential construction.  As a senior operations executive, he has overseen company-owned and franchise business operations for locations in 63 countries worldwide.  Tom has also worked as a management consultant and has provided strategic and operational training to companies both large and small across the U.S.

Tom graduated summa cum laude from Regis University with a bachelor’s degree in business administration.  He also holds SHRM-SCP certification as a senior human resources professional.

Jonathan Hobbie, Senior Manager

Jon supports the management efforts of the firm’s most important asset, its people.  He acts as a leader in HR initiatives including but not limited to coaching, career tracking, training and development, and team building.  Spanning three decades, he has become an industry expert specialized in the automotive aftermarket and powersports.  Jon maintained leadership roles across all major verticals of the industry including fixed operations, parts, and service.  He has factory training and experience with Ford, GM, Mopar, Audi BMW, Mercedes Benz, plus the major Japanese and Italian original manufacturers.

Jon graduated from the University of South Florida with a bachelor’s degree in Sociology.

Lenny Hall, Senior Manager

Lenny leads the largest unit of RHC portfolio companies and brings a tremendous career of experience in the automotive service and repair industry.  He started within the industry in the 1980s at a growing brand in the Pacific Northwest after serving in the Army.  He was honorably discharged with a [blank] rank.  Lenny ultimately was promoted within the organization to General Manager and oversaw a 42-location operation that was subsequently sold.  Thereafter, he owned and operated his own independent repair shop for nearly two decades before joining Relay Hill as a Senior Manager.

Roxanne Martinez, Manager

Roxanne is instrumental in supporting the operational and administrative requirements of both RHA and RHP across all portfolio companies and properties.  Along with Shiju, she co-leads the firm’s social impact initiatives.  Her prior experiences include the management of both small businesses and a portfolio of commercial and residential properties in Denver metro. Roxanne also received her bachelor’s degree in finance in Colorado.

Partners you can TRUST

News

Major Changes in the Automotive Repair Industry

  1. Consolidation fueled by private capital has made it challenging for independent repair shops to compete and the “neighborhood service center” is going away while regional and national brands takeover Relay Hill Auto strategy: Our portfolio of auto repair businesses will support communities by maintaining heritage local brands that have their own processes and procedures to best serve their local communities. Although we aim to grow our collection of brands and locations to remain competitive, we will not do it at the detriment to our existing customers. We are family-owned, independent, and operated without any professional investors. That may slow our growth, but it protects our employees, customers, and the legacy of our brand founders.

  2. There is a severe lack of tradespeople capable of delivery technical excellence in an industry facing increasing complexity Relay Hill Auto strategy: We believe scarcity is an opportunity for best-in-class operators. Organizations that support training & development, healthy workplace culture, and a purpose-driven mission will attract talented professionals and make the industry better in the long-run. We do acknowledge the shortfall of technical competency within the industry and it motivates our efforts to support young professionals pursue trade work as well as our own development of apprenticeship programs.

  3. Small businesses cannot compete with conglomerates due to uncompetitive purchasing power and customers are more likely to demands margin compression due to a greater ease of accessing parts Relay Hill Auto strategy: We operate with an intention to grow the portfolio of business to provide more career development opportunity to team members but also maintain our leverage with suppliers. We are confident a significant segment of customers desires extraordinary service, leading-edge technical excellence, and a mission-driven purpose. Those exclusively desiring a cheap solution may not be our ideal customers as other business engage in a race to the bottom. We will operate with integrity and confidence in our people and services.

  4. Aging shop owners are facing difficulty keeping up with the technological advancements in vehicles and equipment, as well as, growing expectations from customers for greater transparency and a service level more akin to discretionary service industries Relay Hill Auto strategy: Our growth strategy includes acquiring operations with excellent reputations, yet can benefit from professionalism and improved processes, particularly leveraging technology. In areas where a valuation gap exists between potential Sellers and our team, we will selectively take on clients with the intention to adopt best practices and professional improvements in their businesses. These actions may improve their operations, mitigate a valuation gap, and enhance their opportunity to create a succession plan beyond selling to a conglomerate or corporate brand.

The automotive repair industry is facing headwinds, but Relay Hill Auto has a growth strategy to continue supporting its various communities with exceptional services and capabilities

Contact US

We are eager to find the best business and property opportunities in

Texas & Colorado consistent with our mission and values

Office Phone 832.831.0018
Headquarters 3686 W 72nd Avenue Westminster, CO 80030
Email shiju@relayhill.com
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