Pre-close · Auto Aftermarket

Auto Aftermarket Deals: IP Transfer & Licensing Done Right

Securities and M&A counsel for independent sponsors structuring auto aftermarket transactions, from LOI to close to the capital markets that open up afterward.

EV range $8M to $90M EV EBITDA $2M to $16M Audience Buy-side / Sponsor
The deal context

IP Transfer & Licensing on auto aftermarket deals is one of those workstreams that looks routine on a checklist and decides outcomes in practice.

The typical auto aftermarket platform sits at $8M to $90M EV with EBITDA in the $2M to $16M range. The thesis runs on service-center or specialty-shop regional roll-ups. Technician shortage is the single biggest valuation risk. Underwrite the bench, not the bays.

The moves

How IP Transfer & Licensing actually gets structured.

  1. Identify all IP, including informal employee-inventor work product.

  2. Pull assignments and works-for-hire records, with gaps remediated pre-close.

  3. Address open-source license compliance in any software stack.

  4. Plan trademark assignment recordation and continuation filings.

  5. In auto aftermarket, layer in technician retention pool defined and funded as part of the IP Transfer & Licensing workstream.

The common mistake

Assuming the company owns its IP because the website says so. Without paper, ownership is a hope.

Jason's take
"Every piece of IP in the deal needs a chain of title. Find the gaps before the buyer's counsel does."
Jason Powell · IP Transfer & Licensing
Capital after close

The deal is one thing. The capital that opens up after close is another.

Most independent sponsors solve the closing capital and then run into the post-close capital problem alone. The capital markets relationships that matter at month 18 are part of this practice.

MONTH 18
Senior refi
MONTH 24
Dividend recap
MONTH 36
Growth equity
YEAR 4–5
Strategic exit
TALK TO JASON

An LOI on the desk, a auto aftermarket target, and a IP Transfer & Licensing question worth a real conversation.

Twenty minutes of practitioner-grade input from a securities attorney whose first move is to read the deal, not the engagement letter.