Outdoor Power Equipment Business Successfully Sold in Phoenix, Arizona
A complex transaction involving commercial real estate, working capital recasting, and strategic deal structuring that resulted in a successful multi-million-dollar business transfer.
Project Description
This was the greater Phoenix area's premier supplier of outdoor power equipment offering equipment & parts sales, equipment repairs, and equipment rentals. They supplement these major revenue streams by offering miscellaneous outdoor supplies, winter seed, chemicals, and fertilizers. Their large and active customer base includes homeowners, home renters, small landscape contractors, large landscape contractors, municipalities, fire departments, forestry departments and property management companies.
Project Challenge
- Internal financials were accurate but not tracking AR & AP & Inventory therefore lacking the ability to determine working capital requirements.
- Client wanted to sell the CRE buyer wanted to rent.
- CRE owned by the LLC operating entity.
Project Result
- Worked With Client's CPA To "Look Back" Over Two Previous Years To Accurately Determine What AR/AP/Inv Was Valued At And We Built Our Model With These Values Correctly Recasting Internal Financials And Determining Working Capital.
- We Prepared A CRE Broker's Opinion Of Value That Determined An Accurate "Fair Market Rent". We Adjusted Rent Expense Accordingly Increasing The Value Of The CRE And Underlying Fair Market Rent. Buyer Agreed With The Higher Rent Rate With CPI Triggers.
- We Assisted The Buyer Moving The Title To The CRE To A New Entity So The Operating Entity Could Be Sold Without The CRE.
- Very Happy Client That Refers Clients To Us Year After Year.
Project Information
Project Location
Phoenix, Arizona
Timeline
6 Months
Industry
Outdoor Power Equipment
Selling Price
$4,000,000
Key Transaction Highlights
Premier Supplier
Financial Recasting
CRE Restructuring
$4M Transaction Value
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
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