Longleaf was consulting with a client who had just sold a healthcare related DME benefit manager and was starting a roll up of medical related practices. The client had entered into an interim arrangement with a public traded REIT to do some sale/lease-backs for acquisitions of real estate holdings and was not thrilled with the way the transaction was headed. The client had Longleaf review the agreement and the terms of the sale/lease-back. This transaction formulated a partnership where Longleaf formed an entity on behalf of the client and secured a guidance line of credit to secure the sale/lease-back on more favorable terms and in a win-win transaction.

Dilemma: How can the client grow their roll-up of practices and have input in the sale/leaseback process?

Value Proposition: Start a private fund to do their own sale/lease-backs that is a local provider that you can bounce transactions off of prior to acquisitions. Longleaf’s team assisted the client in a $1.2 million real estate sale/leaseback that had a two week turnaround and was able get the transaction closed and form an entity to do all of their future sale/lease-backs with a $10,000,000 debt/capital raise.