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Recapitalization of Automotive Aftermarket Service Provider

  • Location: Southeastern and Southwestern United States
  • Sectors: Automotive Aftermarket
  • Ownership: Privately Held
  • Situation Type: Private Equity Recapitalization

Company Overview:

Leading multi-store operator of automotive collision repair services in the Southeastern and Southwestern United States.

Situation:

Brookline was engaged by the shareholders to help the company find a financial partner. The shareholders were seeking a partial liquidity event, but also desired to align with a financial partner that could provide the capital to support an acquisition strategy and provide direction from a board level.

Brookline's Tailored Approach:

Brookline coordinated a limited process to minimize the burden of a transaction process on shareholders but also deliver premium market valuation and terms for management. Brookline clearly articulated the value proposition of the company's geographic stronghold in a consolidating industry. Brookline identified potential investment partners with significant applicable industry experience that could support the Company's growth plan and drive incremental value for shareholders for a second liquidity event.

Result:

The company partnered with a large private equity firm to recapitalize the business to rationalize the company's shareholder base and arrange capital for management's acquisition-focused growth plan. The shareholders achieved a significant liquidity event and continue to own a meaningful portion of the company going forward. Brookline's efforts resulted in the formation of the 5th operating consolidator in the industry.

Follow-Up Note: Since the initial transaction, Brookline has assisted the company and its private equity ownership in creating a new industry consolidator platform with operations in six states and market value over $150 million.

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