The following story illustrates how ComReal’s ability to synergize their Miami business division with their Miami industrial real estate division successfully facilitated the acquisition of a local logistics and trucking operation by a national company based out of state. The total transaction was valued at more than $4,000,000, involving six different companies and over 200,000 square feet of Miami warehouse space.
Sell Side Story-
A family owned business approached Michael Weihl head of ComBiz, ComReal’s business division, to sell their business and properties. Like many businesses in Miami multiple generations were involved. The company was founded and operated by the son over twenty years ago. He parlayed his knowledge of logistics with his parent’s knowledge in trucking to develop the company into a highly profitable niche in the public warehousing and transportation of commodities. Though successful, the ambitious son knew they had taken the business about as far as they could on their own, and when the parents said they were ready to cash out he was prepared to sell and move on to other projects. Having no idea how to accomplish this he hired ComReal. Mr. Weihl then proceeded to work with the family to prepare them for the transition. First, they did a full analysis of the business, initiating various changes that would add value to prospective acquirers. A full slate of materials and strategies were created to market the business confidentially. He quarterbacked a team of existing and new advisors in manners of legal, tax, retirement, and financial planning to help the family not only develop exit strategies to accomplish their business exit goals, but to meet their personal objectives as well.
Buy Side Story-
Meanwhile in New Jersey another multi generational family owned company had recently sold off the bulk of their logistics business to a large private equity firm from New York, they carved out a smaller piece of the company the Private Equity firm did not
understand and focused on its growth. With the capital and experience of having owned or managed over one million square feet of businesses and property they began seeking real estate and logistics opportunities nationally. One of their targeted areas was Miami. They liked the property market, but were less sure about its potential for their logistics operations. They turned to the ComReal Miami industrial team to find them large blocks of industrial property. The team led by Edward Redlich and Christopher Spear introduced them to various opportunities in real estate. During the course of their engagement they mentioned their merger and acquisitions specialist had a Miami logistics company for sale and introductions were made. The local company was presented as a way for them to ease into the Miami market through the purchase of a profitable niche business rather than starting from scratch. They agreed, after all of the non-disclosure agreements were signed they were presented with a seller’s memorandum. Encouraged by what they reviewed further deliberations were requested.
The Merger-
Thus began a yearlong process of courtship and negotiating. With the multiple advisors and company entities involved the deal often felt like a mid season NBA trade. But even facing economical, geographical and some cultural differences, ComReal’s implementation of a professional and well thought out transfer strategy combined with the mutual respect between the two principals, culminated in a successful transaction.
For the Miami Company, the sale of the business created enough cash to accomplish the parent’s retirement goals. The deal was structured so that the son retained a portion of ownership in the newly formed joint venture, with the proceeds of the sale he now has the option of staying with the company and being a part of its further expansion (within two months of the sale they have already opened a 100,000 sq. ft. warehouse in New Jersey and suppliers are requesting additional locations) moving on to another venture in a different field, or just taking a step back for a few years. His retained ownership stake in his rapidly growing company will allow him to take the proverbially second bite of the apple as the value of the business continues to rise.
For the out of state firm they now have an operating partner to impart his knowledge to their team during the company’s national growth expansion. In addition they now have a foothold in the Miami market from which they can utilize their capital to seek further opportunities in both the logistics business and their real estate portfolio.
ComReal looks forward to solving company’s business and real estate issues utilizing their ability to apply multiple perspectives and expertise. For more information on other Miami business opportunities visit www.ComBizMiami.com and visit www.MiamiWarehouseTeam.com for Miami warehouses for lease and/or sale.
Michael Weihl
Senior Associate
ComBiz Miami
T 786-433-2503
Mergers and Acquisitions
No comments:
Post a Comment