Pre-close · Specialty Chemicals

Independent Sponsor Real Estate Carve-Outs in Specialty Chemicals

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

EV range $15M to $200M EV EBITDA $3M to $28M Audience Buy & Sell-side
The deal context

The economics on a specialty chemicals platform deal usually hinge on a handful of structural decisions. Real Estate Carve-Outs is one of them.

The typical specialty chemicals platform sits at $15M to $200M EV with EBITDA in the $3M to $28M range. The thesis runs on niche formulator or contract manufacturing buy-up. The IP lives in the formulator's head as often as in the company. Structure for that risk explicitly.

The moves

How Real Estate Carve-Outs actually gets structured.

  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.

  5. In specialty chemicals, layer in chemical inventory transfer filed as part of the Real Estate Carve-Outs workstream.

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
Capital after close

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

After close, the call list for refinancing, recapitalization, and growth equity gets short and known. Jason carries that list.

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

Bring the specialty chemicals deal. Get Real Estate Carve-Outs done right.

Direct counsel from a securities and M&A attorney with billions in structured transactions, the independent-sponsor-native playbook, and the capital markets network that opens up post-close.