Management Buyout Case Study
PPL RVs, Inc.
The BusinessPPL is one of the nation's largest consigners of pre-owned recreational vehicles and online parts retailers. PPL also services RVs and sells parts directly to consumers.
PPL was introduced to Main Street by an intermediary representing a full buyout transaction of the company’s two owners. Main Street quickly discovered that a seasoned management team was responsible for the day-to-day operations and wished to remain at PPL.
Main Street, along with management, provided 100% of the capital requirement in the form of a senior secured term loan and a direct equity investment. This transaction facilitated first-time ownership by the management team and monetized a portion of the founders’ investment. Subsequently, Main Street financed the purchase of certain real estate from the founders as part of PPL’s long-term strategy. Main Street continues to provide strategic oversight while giving the management team operational autonomy.
Before Main Street Partnership
- Owners sought full buyout
- No path for management to own equity
- Limited growth prospects due to capital constraints
- Single location
- Management leases real estate
After Main Street Partnership
- Owners have received desired liquidity
- Key members of management hold ownership for the first time and have the opportunity to invest alongside Main Street
- Growth prospects coupled with significant capital availability
- Several locations
- Management co-owns real estate with Main Street
- Proven market position
- Strong management team with meaningful ownership
- Attractive growth opportunities
- Management buyout
- One-stop financing
- Growth capital
- Senior secured debt
- 53.3% equity ownership