Atlanta Chapter August Meeting!
Presentation – Marsh Creek Advisors
The State of M&A: lot of people see a commission opportunity and want in on it, but they don’t understand it.
66% of business owners say their business is the largest financial transaction of their life.
If selling RE in advance of the business make sure you have some things in process first.
It’s hard to get a good deal done.
There is more capital out there now than ever; private equity companies raise capital to spend, but they are sitting on it longer than intended because it’s hard to find good assets.
Companies that are currently “hot” in terms of private equity purchases are Essential, Field & Facility Services, such as: HVAC, Plumbing, Fire & Life Safety (Hot!); Garage/Overhead Doors; Pest Control; Tree & Landscape Services; Janitorial/Facilities. These companies are ripe for roll ups and consolidations which makes it painful for the owner/seller.
Also seeing accounting firms, doctor’s offices, law firms, professional service firms selling to private equity. And there is definitely a trend towards entrepreneurship through acquisition.
Finding that many private equity firms don’t want to own the real estate; they just want to the business.
Most deals fail because owner thinks business worth more than it is and most people wait too long to sell. Do it before you are ready to hit the beach, because the process takes 18-24 months.
Roundtable Notes:
Merger & Acquisition work has been strong this summer; closed transaction with wholesale flower business; few more getting close to closing; on the commercial real estate side – representing buyer on a warehouse closing; leasing deals in Winder; and five raw land deals going on this year. On a SC property, the county rejected our proposed surveys because we had an easement; they said our property our property needed to “touch” the highway. Seeing an uptick in private lending in foreclosures: NC, SC and GA. Working with a client who has a vending machine business, and he needs a few more placements in Atlanta. (Menden Freiman, LLP)
Focused mainly on raw land deals or lot deals for homebuilders, some apartments. Working on an 88 acre deal in South Fulton pushing out the marketing collateral and getting some good responses. Have a deal under contract in Henry County going through re-zoning; also doing a rezoning on Winder Hwy in Jefferson for a property that’s been on the market for about a year. (Ackerman & Co.)
Have several Industrial deals – warehouses in Dalton and Calhoun; and picked up two small buildings outside of Dalton that will be on lease market; Also have a commercial corner lot in Carrollton that’s on the market and 30 acres north of Carrollton – industrial with rail. Seeing a lot of activity – offers on three different properties this week that are good offers. (Sauls Commercial Real Estate)
Charles Green –Funding 1.6 million project in Rockmart; childcare center in Panama City; 2.5 million childcare operation in Biloxi, purchasing an old school in Panama City; 5 million dollar childcare center closed to turn in office center. Lot of activity, but also a lot of ghosts. (Harvest Small Business Finance)
Flag project still going on in Florida Panhandle; bourbon deal we updated the numbers, so going out to try and raise money – did get zoning for hotel; horror film project has an offer of memorandum. (Deway Capital, LLC)
Have a million dollar 1031 cash dealcoming up in next three weeks –a retired gentleman from Wisconsin coming down to be with family. Looking for 6% cap and up; he can also add another @million and can add another $2 million to it – looking for something with triple net income. Also have a deal on a $4 million building – owner occupied that I’m hoping to get back track and a building in historic area of Roswell – an office building – looking for investors. Looking for a 5000-6000 sq. ft warehouse and looking for an area in Cumming to park trailers for a landscaping company (ITRA Global)
Work predomination in acquisitions of Class B/C Industrial Assets. Have two deals currently under contract: one in Covington and one in Charlotte. Play in the middle market, single-tenant space. (Woodland Industrial Partners )
Canadian tariffs have increased prices for roofing supplies; luckily we were able to purchase ahead of that and warehouse a supply because most of it comes from Canada. Having the supply enables us to continue working and providing roofing that people can afford (FGA Roofing).
Market is great; lot of activity from all angles. Recently closed a deal for industrial/warehouse for a bus company that needed space to park its bus and work it. Was hard to find a place to pull the bus in. Also have a building in Chamblee across the street from the high school, which will probably be a burger joint and hang out for the students. (ATL Commercial Real Estate, Inc.
Past three weeks have been quiet but prior to that things have been busy all over the Southeast. Even had my first hospitality deal since Covid – the Hyatt Pace in in Buckhead. Equitable Building is back on the market, and I’m also picking up work from contractors: behind the scenes of the bagging tracks at Hartsfield Jackson and also doing something at Greenville/Spartanburg International Airport. (Capitol Photography and Video)
Bremen Farms is raising capital in the friends and family stage and Founder’s Circle, which includes amenities and lots. Also working on two specialty sports complexes. (Grayson Properties)
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