Pre-close · Deal Workstream

Real Estate Carve-Outs.

The separation of operating company real estate from the operating business, often into a related-party lease structure.

The moves

How Real Estate Carve-Outs actually gets done.

  1. Separate operating real estate into a single-purpose entity pre-close.

  2. Document an arm's-length lease with renewal options and assignment rights.

  3. Address title, survey, and environmental on each parcel.

  4. Coordinate the real estate close with the operating company close.

The common mistake

Leaving the real estate inside the operating company. The buyer pays a higher multiple than the real estate deserves.

Jason's take
"Real estate trades at a different multiple than the business. Separate it, lease it, manage it."
Jason Powell · Real Estate Carve-Outs
Real Estate Carve-Outs across industries

25 industries with Real Estate Carve-Outs pages.

$15M to $120M EV

Healthcare Services

roll-up of physician practices and ancillary service lines

$8M to $80M EV

Home Services

regional roll-ups of HVAC, plumbing, and electrical operators

$10M to $150M EV

Precision Manufacturing

platform plus tuck-in machine shops or aerospace-qualified shops

$10M to $200M EV

Vertical SaaS

platform plus adjacent module acquisitions inside a single end-market

$8M to $90M EV

B2B Services

recurring revenue service platform with bolt-on operators

$12M to $140M EV

Logistics & Distribution

regional acquisitions of brokerages, 3PLs, and last-mile operators

$10M to $100M EV

Specialty Distribution

vertical buy-up of niche product distributors

$10M to $120M EV

Food & Beverage

CPG roll-up or co-packing platform with regional bolt-ons

$8M to $80M EV

Multi-Unit Restaurants

franchisee roll-up or regional concept acquisition

$8M to $90M EV

Auto Aftermarket

service-center or specialty-shop regional roll-ups

$15M to $200M EV

Aerospace & Defense

tier-two or tier-three supplier consolidation with certifications as moat

$10M to $130M EV

Industrial Services

regional consolidation of plant maintenance, specialty contracting, or rentals

$10M to $150M EV

Building Products

regional manufacturer or specialty distributor consolidation

$8M to $110M EV

Specialty Construction

trade-specific buy-ups (roofing, mechanical, electrical, fire protection)

$10M to $150M EV

Insurance Brokerage

regional retail agency roll-ups

$10M to $180M EV

Wealth Advisors & RIAs

RIA aggregation or wealth platform roll-up

$8M to $100M EV

Veterinary Services

general or specialty practice roll-up under an MSO

$10M to $130M EV

Dental Practice Management

DSO buy-up under an MSO

$8M to $90M EV

Education & Training

private school, training academy, or B2B training platform consolidation

$5M to $80M EV

Marketing Agencies

specialty agency or holdco platform with bolt-ons

$8M to $100M EV

IT Services & MSPs

MSP platform with regional or vertical-specific bolt-ons

$10M to $130M EV

Cybersecurity Services

MSSP or specialty consulting platform

$10M to $140M EV

Energy Services

regional oilfield service or renewable services consolidation

$12M to $150M EV

Waste & Recycling

regional hauler or transfer station consolidation

$15M to $200M EV

Specialty Chemicals

niche formulator or contract manufacturing buy-up

Work with Jason

Talk to Jason about Real Estate Carve-Outs.

Twenty minutes of practitioner-grade input from a securities attorney built for the independent sponsor model.