Corporate Sale and Lease Negotiations:

Construction Equipment

BUSINESS
SUCCESFULLY SOLD
WITH COMPLEX
AGREEMENTS.

A divorce attorney requested a business opinion about the ability of his client’s community-property-owned company to support the cash flow required to liquidate the to-be-former wife’s interest in the company.

Financial analyses of the company indicated that it could not sustain the costs of pay-out nor could it finance a settlement. Consultation with the owner/entrepreneur resulted in his making a decision to sell the company. He requested that we assist him and his counsel in identifying possible buyers, negotiating with interested parties, preparing the various due diligence documents and finally closing the sale of the properties. The transaction also included several non-compete provisions and subsidiary agreements. The company occupied land owned by several current and former family members with whom the entrepreneur did not want to negotiate; we assumed those responsibilities. The sale of the assets of the business and negotiation of amended leases closed after several months’ elapsed time.

Approximately eight years later, the buyer/leasee sought lease amendments to allow a sublease of a substantial portion of the leased property. Agreement to allow the sublease was negotiated in late 2008 by Ms. Cassidy and included a contractual 5% annual rental increase provision as well as a one-year notice provision. Finally, primarily due to the Great Recession, the lease was terminated at the end of the initial ten-year period. Lease termination compensation was again negotiated by Aspen Affiliates’ personnel, at four times the settlement compensation that the tenant initially offered, including reimbursement of previously unpaid obligations and return of equipment.