This plumbing contractor business was focused on new construction which represented most of their top line revenue. Their customer list featured large well known general contractors many considered “repeat” clients. 50+ employees.
Project Challenge
Unique & aggressive client structure with two closely held entities.
Client preferred to keep the CRE.
Project Result
Worked closely with PE buyer to clearly explain the intent, purpose & benefit of the dual entity structure. PE buyer became comfortable with the structure & proceeded with the closing.
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.
Very happy client that refers clients to us year after year.
