CASE STUDY

SealMaster

SealMaster Continues Operations Through Transaction With Franchisor Affiliate

Florida Pavement Coatings, Inc. and South Pavement Coatings, Inc. both franchises of

SealMaster logo representing the company's successful transaction with a franchisor affiliate.

Has continued operations though a transaction with

An affiliate of the franchisor

Sell-side M&A

Two SealMaster® franchisees in Florida faced significant financial challenges, including mounting debt and unpaid franchise fees, leading them to file for Chapter 11 protection. Previous attempts to negotiate a sale with a franchisor-backed group were unsuccessful, and the secured creditor was preparing to lift the stay.

To address the situation, additional time was negotiated with the lender to allow for a structured marketing process. Within seven weeks, a competitive auction was organized among five qualified bidders. After 19 rounds of bidding, the final offer represented a 76% increase over the initial bid. The assets were ultimately sold to the franchisor to ensure continued operations. The court approved the transaction, and the sale closed in less than ten days.

Industry: Business Services | Transaction Type: Special Situations