Asphalt Paving Business Successfully Sold in Arizona
A complex transaction involving private equity buyers, unique partnership structures, and commercial real estate retention resulting in a $14.5M sale.
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.
Project Information
Project Location
Arizona
Timeline
7 Months
Industry
Construction Maintenance
Selling Price
$14,500,000
Key Transaction Highlights
Multi Generational
Phantom Partner Structure
CRE Retained
$14.5M Selling Price
Complex Business Sales Require Experienced Advisors
Transactions involving owner-occupied real estate, financial normalization, SBA financing, lease restructuring, and valuation adjustments require specialized business brokerage expertise.
Closed Business Sales in Arizona
Thinking About Selling Your Asphalt Paving Business?
Whether you're considering retirement, planning your next venture, or simply exploring your options, our team can help you understand your business value and prepare for a successful transition.