Case Study:

The owner of Neighborhood Convenience Stores, Inc. wanted to maximize the value of the business he had operated for over a decade in order to retire. He engaged Matrix to advise him in the sale of 8 of his 9 Little Sue branded convenience stores.
Matrix determined the market value for each store based on the historic store profit and loss statements, review of property leases and environmental documents, review of the fuel supply agreement, site visits, and an evaluation of the operating market.

After sharing this valuation and obtaining a thorough understanding of the client’s business, Matrix crafted a very confidential sale process which focused on a limited number of large strategic buyers and regional petroleum marketers who were looking to grow in this particular geography. The eight stores were offered as one package.
Neighborhood Convenience was obligated under a long term supply contract with a local Exxon jobber, and the transaction depended on the buyer assuming that contract to avoid litigation, penalties, or delays in the transfer of the assets.

Matrix contacted 77 potential buyers and provided them with Acquisition Profiles, describing the business in general terms without revealing the identity of the seller.
We received executed confidentiality agreements from 35 of the potential buyers contacted. These buyers were given access to a secure online data room which allowed them to easily access all of the due diligence information related to the sale.
Several offers were received for the entire package and Matrix negotiated an acceptable Asset Purchase Agreement with 7-Eleven, Inc. for the 8 stores. The client’s value expectations were exceeded and 7-Eleven assumed the supply agreement.