"Jack and I sold to Jeff and Alex because we trusted them and knew they were good operators. They've delivered on every promise they've made and are always easy to work with. Frankly, I don't even think about it anymore, the money just shows up every month."

- Alice, former owner

Case Study - Security Storage

At CWGP, we strive to understand each seller's true goal for the transaction and then craft a personalized ownership transition to best meet those needs. One example of such was our purchase of Security Storage, a 70k sq. ft. facility in Madison, WI.

 

Jack, Security's owner, approached us with the thought of selling. In addition to getting a fair price for his business, his top concern was that his wife was well taken care of. Due to his health situation, Jack knew that his wife would likely live past him for several decades. Together, we crafted a deal structure where Jack's wife, Alice, could receive hassle free payments throughout her retirement.

 

Terms of the deal

  • Value - We came to a handshake agreement on price based on our shared expertise in the industry and the opinion of a 3rd party assessor. Because of this one to one connection, Jack's intermediary expenses were minimal.

  • Deal structure (1/2) - Importantly, we agreed to conduct the transaction as a stock purchase. This had important tax benefits for Jack. Most importantly, it shielded Alice from any future liability - truly making her retirement worry free.

  • Deal structure (2/2) - As Jack was hoping for an annuity like structure for payments to Alice, we structured the deal with 70% seller financing. This worked because Jack trusted us as operators to manage the business well and continue to pay Alice. Because his trust was in us, the seller financing is non-transferable.

  • Diligence - We completed all diligence and closed within 30 days. This made Jack's life significantly easier than a protracted and invasive longer close.

Sadly, within 18 months of the deal closing, Jack passed away. However, thanks to the structure that we put in place together, Alice continues to receive monthly payments and enjoy her retirement worry free.

 

This is just one example of a deal structure. During a transaction, our goal is to work closely with sellers so that we can craft a structure specific to them and their needs. That takes the know-how, time, and trusting relationship. No matter where you are in your transition planning, please reach out so we can have a conversation and start developing a relationship.