Majority Recapitalization Solution for a 3-Unit Tire Shop in Baton Rouge, LA
SIG’s team, led by Caleb Pruitt, guided the owners of a family-built, three-location commercial truck tire and service company through a majority recapitalization transaction in Louisiana. Seeking retirement planning, partial liquidity, and a long-term growth partner, the sellers wanted more than just the highest bid. They needed a structure that preserved the family legacy and allowed continued involvement in the business. SIG helped structure a partnership by aligning them with a founder-led fleet service company, which is a private equity-backed platform that delivered liquidity, retained upside, and positioned the company for continued expansion.
Client Overview
The client was a family-owned and operated commercial truck tire and service company founded approximately 20 years ago by a husband and wife. Built from the ground up, the business had grown into a respected three-location operation, with the founders’ two sons actively involved in daily operations. As the founders began planning for retirement, they sought a transaction that would provide liquidity, reduce personal financial exposure, and support the long-term sustainability of the company without requiring a full exit.
The Challenge: Balancing Liquidity, Legacy, and Long-Term Partnership
The transaction involved several important considerations:
- The founders wanted to monetize a portion of the value they had created while remaining involved in the business.
- The family sought a buyer whose goals and values aligned with their long-term objectives for the company.
- Multiple interested parties emerged, requiring the sellers to evaluate potential partners on variables other than purchase price.
- The resulting structure needed to preserve local operating continuity while introducing shared control and institutional processes.
The experience of finding the right buyer and succession planning was highly personal for the seller; the process demanded thoughtful guidance, clear communication, and a transaction structure that would keep the family comfortable before and after closing.
Our Approach:
- Understanding the Seller’s Goals Beyond a Traditional Exit
From the outset, Caleb recognized that this was not a typical sales process. The founders were not looking for a complete departure from the business, but wanted to take chips off the table over time, reduce personal risk, support retirement planning, and remain involved in the company they had spent decades building. That meant any solution needed to balance current liquidity with future upside.
- Running a Targeted Process to Find the Right Partner
SIG was engaged to help identify and evaluate potential partners that could support the family’s goals. Through a targeted marketing and outreach process, the team generated interest from multiple qualified buyers, including strategic operators and private equity-backed platforms. Rather than focusing solely on valuation, SIG worked closely with the sellers to assess each opportunity based on cultural fit, growth strategy, and the ability to support the business’s employees, customers, and long-term vision.
- Structuring a Partnership That Balanced Liquidity and Continuity
SIG helped structure a partnership in which the buyer acquired a majority ownership stake while the sellers retained partial ownership in the business, as well as equity in the larger national platform. The founders remained actively involved in day-to-day operations and continue to serve as key decision-makers, helping drive growth across the broader platform. This structure provided immediate liquidity while preserving family involvement, operational continuity, and meaningful participation in the company’s long-term success.
- Aligning the Business with a Growth-Oriented Platform
The selected buyer offered more than acquisition capital. The platform provided access to growth capital, operational expertise, technology enhancements, industry relationships, and proven best practices. SIG helped both sides align around a partnership vision that preserved local strengths while creating the infrastructure for long-term scalability.
- Navigating Diligence and Building Trust Through the QoE Process
A formal Quality of Earnings process was a critical component of the transaction. SIG worked through financial normalization and diligence alongside both parties to validate earnings, support transparency, and keep the process moving efficiently. This diligence phase helped reinforce confidence in the business and laid the foundation for a smooth closing and post-transaction relationship.
The Results: Family Business Secured Liquidity and a Platform for Growth
Through a successful majority recapitalization, the founders were able to take meaningful liquidity off the table while retaining ownership and continuing their involvement in the business. The transaction provided a retirement pathway, reduced personal financial exposure, and preserved the family’s legacy.
At the same time, the business gained access to the capital, systems, technology, and strategic support needed to grow across its existing footprint and beyond. By partnering with a platform aligned with its values and future vision, the company strengthened its long-term competitive position while maintaining continuity for employees, customers, and family leadership.
RESULTS SNAPSHOT
- Founders Received Partial Liquidity Without a Full Exit: Majority Ownership Stake Acquired by Strategic Partner, Partial Ownership and Equity Retained by the Family Ownership
- Next Generation Remained Involved in Daily Operations
- Partnership Created Access to Growth Capital, Technology, and Operational Support
- Family Legacy Preserved While Positioning the Business for Expansion
What Sets This Approach Apart
This transaction highlights SIG’s ability to advise on nuanced business sales where seller priorities extend far beyond valuation alone. In this case, success meant helping a true family-run business transition responsibly and thoughtfully
SIG helped create a structure that balanced liquidity, retained upside, and long-term collaboration. The result was a more thoughtful and strategic partnership solution, one designed not just to close a deal, but to support the continued success of the business for years to come.
Looking to buy or sell an automotive business? Connect with Caleb and Carson.
IMPORTANT INFORMATION: Sands Investment Group and its affiliates do not practice law, and do not give legal, tax, or accounting advice. All clients are advised to consult their tax, legal, and accounting advisors before engaging in any transaction.
