Logistics & Distribution (Specialty B2B)
Case Study 05
the choice to work
Primary Goals:
“De-risk the diligence, lift the multiple, and move wealth outside the estate before close.”
Profile
- Entity: C-Corp (post-reorg)
- Size: ~$35M EV; 12 hubs; sticky B2B contracts with penalties/renewals
- Owners: Two siblings (50s); desire clean exit and multigenerational planning
Pain Points
- Estate tax exposure post-liquidity; no unified plan for heirs
- Buyers skeptical of contract quality and margin sustainability
- Prior banker shopping the deal too narrowly
- Heavy owner dependency; stale financials scared off sophisticated buyers
How We Helped
Think
“De-risk the diligence, lift the multiple, and move wealth outside the estate before close.”
Problem
Weak contract terms depress multiples; a full-cash exit without planning invites estate tax drag and family disputes.
Feature (Working with Compound Advisory)
- BDITs for each sibling: Enabled control/access benefits without estate inclusion; paired with IDGT sales to shift appreciation out of the estate.
- Dynasty Trust overlay: To cement multi-generational planning and creditor protection.
- Commercial uplift with IndustryPros: Re-papered key contracts (escalators/assignability), built KPI dashboards, and produced buy-side diligence packs to reduce perceived risk.
- Auction expansion: Broadened to strategics and infra-oriented sponsors comfortable with multi-site roll-ups.
Benefit
- Taxes: Projected $6–$7M in estate/gift tax savings over time through BDIT/IDGT/Dynasty structure and grantor burn.
- Value: Contract upgrades and cleaner data books lifted the indicated multiple ~1x EBITDA.
- Family harmony: Clear trustee governance, distribution rules, and liquidity plan reduced post-sale friction.
Your Compound Retirement Clarity Assessment™
A complimentary 3-step process showing you how to reduce taxes and improve your retirement success.
It also helps you evaluate our services and make an informed decision about working together.