Automotive Sale-Leaseback Case Study

Challenge:

Our Client, Matthews Motors, a rapidly growing company, needed to quickly raise capital for their expansion through acquisitions and business development. Instead of initially discussing selling their building, we analyzed their financial strategy and recommended a sale-leaseback as the best way to raise capital.

Action:

• Detailed Analysis: Utilized market data to analyze and price optimally.

• Lease Analysis: Gathered regional and local on-market and executed lease comps.

• Cap Rate & Valuation: Assessed similar regional assets to determine value.

• Company Financials: Assessed EBITDA, Rent Coverage, etc. to present to potential buyers.

• Top Notch Marketing Package: Compiled best-in-class OM

• Buyer Research: targeted list of all buyers of similar assets that had transacted over past 2 years

• Negotiation: Fielded multiple offers, advised regarding countering, & maximized price

• Closed: leveraged real estate holdings to fuel growth of business.

Results:

We were able to provide our client with sound advice and helpful financial analysis that looked beyond the scope of a single transaction. This allowed them to expand and grow their business. We helped them capitalize on an illiquid asset (their real estate) and turned it into a liquid asset (cash). The infusion of capital has played a crucial role in fueling their acquisitions and internal business growth.

Testimonial:

“The advisors at the Finem Group were extremely helpful and great to work with during this process. We’ve had commercial real estate deals before, but they were typical buy/sell arrangements. With this one being the first ever sale & leaseback, it was comforting working with a group that has done several of them before and showed tremendous experience in dealing with these types of transactions. Everything went smoothly from the information gathering stage to the final moments signing the closing documents. Finding the right buyer was challenging but our patience paid off in the end! I would highly recommend the Finem Group to anyone looking to sell, buy or lease commercial property!” – Aaron Matthews, CPA, CFO