The Company

Florida Pavement Coatings, Inc.

Two SealMaster® franchises with exclusive, protected rights to the majority of Florida.

The Challenge

The franchisee had invested a significant amount of capital to upgrade the equipment and facilities right before Hurricane Irma hit and shut down the business for over 60 days. The following winter was abnormally cold and record rainfall in the spring caused the company’s revenue to plummet. Unable to service the debt and pay franchise fees, the company was forced to file for Chapter 11 protection.

The Process

The company had pursued a sale with a group backed by the franchisor, but after weeks of negotiations they were unable to complete a sale. The secured creditor was out of patience and pushing to lift the stay. Equity Partners was retained and convinced the lender to hold off for 45 days to allow us to complete a marketing process.

The Solution

After just 7 weeks, Equity Partners conducted an auction among 5 qualified bidders and after 19 rounds of bidding and a 76% increase to the initial offer, the assets were sold to the franchisor to maintain operations. The court approved the sale and closing occurred less than 10 days later.