CASE STUDIES

Time after time we hear good things from our clients. Every sale-leaseback client appreciates that doing business with AIC frees up capital from non-earning assets giving them the ability to expand their business, improve operations, or reduce debt. Furthermore, AIC Ventures stands behind every purchase agreement we make. Without fail, AIC has done 139 sale-leaseback transactions in a row “ this is unparalleled in the industry. Whether you need to close quickly, have private equity interests, environmental or other challenges, AIC can help. Acquisitions have been completed nationwide; AIC works with mid-market company owners and private equity interests. It has acquired properties challenged by environmental issues, strict deadlines for closing and more. Our fastest transaction was accomplished in 17 days. Below is a sampling of some of the more difficult situations in which AIC has provided capital solutions.

Case Study:
Industry:
Location:
Problem:

Refinance / Growth Capital
Manufacturing
Fort Lauderdale, Florida
Company was seeking to refinance part of its corporate credit facility. The company was looking to maximize the leverage on its real estate and needed to close within an approximate 25 day period to pay off its existing lender.

Solution:

A sale leaseback transaction would provide approximately 33% more in proceeds than would have otherwise been obtained with a traditional mortgage. AIC Ventures successfully closed the sale leaseback transaction at the terms originally agreed to within 17 business days from the signing of the letter of intent.

 

Case Study:
Industry:
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Problem:

Expansion / Growth Capital
Metal Industry
Spartanburg, South Carolina
The Company needed to expand one of its buildings to capitalize on growth opportunities. It had planned on using traditional mortgage financing.

Solution:

AIC Ventures monetized the company’s real estate at full market value and offered to incorporate the expansion into the sale leaseback transaction, enabling the seller to free up a significant amount of capital to support growth initiatives. AIC Ventures worked with the company on the plans and budget for the construction project. AIC Ventures extended its streak again of closing every transaction according to the terms in the original letter of intent.

 

Case Study:
Industry:
Location:
Problem:

Acquisition Capital
Manufacturing
Niles, Michigan
A Chicago-based private equity firm was seeking to close on the purchase of a manufacturing company. To reduce the amount of equity necessary to close the transaction, the private equity firm engaged AIC Ventures to perform a sale leaseback for the full value of the real estate asset.

Solution:

The sale leaseback provided approximately 33% more in proceeds than would have been obtained with a traditional mortgage. AIC Ventures successfully closed the sale leaseback transaction at the terms originally agreed to in the letter of intent, simultaneously with the private equity firm’s purchase of the company.

 

Case Study:
Industry:
Location:
Problem:

Maximize Value
Manufacturing
Louisville, Kentucky
AIC Ventures was approached by a Washington, DC-based private equity firm about exploring a sale leaseback with a portfolio company. The private equity firm was seeking to sell the real estate and distribute the proceeds to investors.

Solution:

The double-digit multiple on cash flow achieved via the sale leaseback created extra value above the single-digit multiple expected from the subsequent sale of the company. AIC Ventures extended its streak, 99 for 99, by closing the sale leaseback with the portfolio company.

 

Case Study:
Industry:
Location:
Problem:

Refinance / Growth Capital
Manufacturing
Tampa, Florida
Seeking to refinance part of its corporate credit facility. The company was looking to maximize the leverage on its real estate and needed to close within an approximate 25 day period to pay off its existing lender.

Solution:

A sale leaseback transaction would provide approximately 33% more in proceeds than would have otherwise been obtained with a traditional mortgage. AIC Ventures successfully closed the sale leaseback transaction at the terms originally agreed to within 17 business days from the signing of the letter of intent.

 

Case Study:
Industry:
Location:
Problem:

Maximizing Value
Industrial Services
Knoxville, Tennessee
The Company approached AIC Ventures about exploring a sale leaseback transaction on two of its owned facilities. The company was desirous of selling the real estate and distributing the proceeds to the owners.

Solution:

The double-digit multiple on cash flow achieved via the sale leaseback transaction created extra value above the single-digit multiple expected from the future sale of the company. AIC Ventures extended its streak, 87 for 87, by closing the sale leaseback transaction.

 

Case Study:
Industry:
Location:
Problem:

Capital for Reinvestment
Manufacturing and Distributing
Atlanta, Georgia | Phoenix, Arizona
Following bankruptcy reorganization two years prior, this client wanted to improve their financials by deleveraging their balance sheet and repatriating the proceeds back into their core business. They also recognized that they needed to locate a funding source to expand their Phoenix facility in the near future as well.

Solution:

They decided on a sale leaseback and with AIC Ventures over other financing alternatives, because it allowed them to monetize their real estate asset at full market value, while maintaining long term control over their real estate. Included in the lease was a commitment from AIC that provided 100% financing for their future expansion plans.

 

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Equity Raise
Custom Packaging
Winston Salem, North Carolina
This client needed to recapitalize their company but needed to invest additional equity to secure a new credit facility. They did not want to sell additional equity shares of their company and opted to monetize their real estate utilizing a sale leasback structure.

Solution:

The proceeds of the sale leaseback allowed them to control their real estate in the long term, while allowing them to raise the equity they needed to secure a new credit facility.

 

Case Study:
Industry:
Location:
Problem:

Funding Growth and Competitor Acquisitions
Manufacturer
Charleston, South Carolina
This company needed financing to complete the acquisition of a competitor. They already had secured commitments from a private equity group and an asset based lender, but still needed to generate more proceeds to consummate the transaction. They chose to execute a sale leasback on the acquisition target’s real estate conterminously with the corporate acquisition.

Solution:

They selected AIC as their partner on the sale leaseback counting our ability to close for cash with no financing or appraisal contingencies, coterminously with the corporate acquisition.

 

Case Study:
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Problem:

Equity Raise / Management Buyout
Commercial Printing
Hollywood, Florida
Foreign parent company decided to sell their US subsidiary to their US management team through a leveraged buyout. The management team decided that since the real estate was such a significant portion of the transaction, a sale leaseback would help them maximize their proceeds at closing and decrease the amount of equity they would have to invest in the buyout.

Solution:

AIC was able to structure a solution that would allow the parent company to buyout its American subsidiary. Without the proceeds from a sale leaseback the management buyout may not have been possible.