Office Address

  • 60 E. Rio Salado Parkway, Tempe, Arizona 85281
  • See Our Contact Page
  • (623) 295-9620

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Project Description

Multi generational family owned asphalt paving company specializing in maintenance projects.

Project Challenge

  • Unique client structure with phantom partner.
  • Client preferred to keep the CRE.
  • Financial promises made to certain company leadership people upon sale.

Project Result

  • Worked closely with PE buyer to establish a structure that allowed the phantom partner to participate in the upside earnout. We assisted client establishing an affiliate LLC and transferred title of the property prior to close.
  • We prepared a CRE broker’s opinion of value that determined an accurate “fair market rent”. We adjusted historical rent expense accordingly increasing the value of the CRE. Buyer agreed with the higher rent rate with CPI triggers and a first right to purchase was negotiated and built into the PA.
  • Worked closely with PE buyer and structured a decrease in the price and buyer provided equity in the NewCo to leadership individuals lowering client’s tax liability.