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BlogLeap Brands' network facilitates 64 Unit Rent-A-Center Deal

Leap Brands' network facilitates 64 Unit Rent-A-Center Deal

Read Time

3 Minutes

Author

Megan Morganti

Posted

April 19, 2024

Leap Brands successfully facilitated a challenging sale of 64 Rent-A-Center units within hours by leveraging their extensive network of private equity firms, connecting the sellers with Directional Capital. Through expert negotiation and coordination with Paris Ackerman, Purple Square, and Directional Capital, Leap Brands orchestrated a monumental deal that advanced the portfolios of all involved parties.

Leap Brands' network facilitates 64 Unit Rent-A-Center Deal

3 Minutes

The Deal

Over a year after franchisees David Paris, Mike Ackerman, Vik Patel, and Sanjay Patel listed their 64 Rent-A-Center units, the massive deal was finally closed. During that year, the deal alongside brokers, moved through several opportunistic organizations with no success in landing a buyer. The search became so futile that the franchisees considered pausing the sale indefinitely. Fortunately for the franchisees, Chris Wunder and Chaz Cervino of Leap Brands were able to successfully tender the right buyer for this particular deal.

Leap Brands, an advisory firm that specializes in the franchising industry had the specific expertise the sellers needed to initiate negotiations. The sale proposed a unique challenge as the industry is not a typical portfolio fit. Leap Brands has an extensive network of professionals in the private equity space and was able to tap this network to search for the right buyer. Within hours, Leap was able to connect the franchisees with Directional Capital. Alongside their investors, Directional Capital approved the prospective investment and negotiations began. Because of Leap's responsiveness, the two parties reached an agreement resulting in what was referred to as a “monumental deal”.

Paris Ackerman

Paris Ackerman is a law firm in Northern NJ with an esteemed reputation for facilitating complex transactions and negotiations across varied industries. Their expertise is widely acknowledged by an extensive network of law professionals. Paris Ackerman is extremely well-versed in franchise law, further protecting their assets during the Rent-A-Center negotiations. Paris Ackerman serves businesses of all industries and takes pride in their deep understanding of the law.

The Patels

The Patels work alongside Paris Ackerman as operating partners through the management company Purple Square. The company focuses on enhancing existing brands' reputations through the power of customer success metrics. Purple Square is heavily immersed in the franchise space, representing its partners well within the Rent-A-Center deal. The success of Purple Square is driven by its commitment to consumer faced excellence. Their initiatives are apparent in all business sectors and continue pushing their investments to new success.

Directional Capital

Directional Capital is a private equity firm with a specific interest in investing in middle-market organizations. The firm claims over $5 million in diversified asset management. Directional Capital has close business relationships with their asset management parties allowing them to properly structure unique investment opportunities. Directional Capital offers its clients with more than just financial support but also operational business support. Directional Capital was able to increase its capital by purchasing the Rent-A-Center units and offering the franchisees the best possible situation to succeed.

Leap Brands

As a business advisory firm, navigating mergers and acquisitions is just one of the services Leap Brands provides to its diverse network of clients. Leap Brands specializes in placing executive leaders across the franchise and private equity backed business landscape. Leap Brands also provides businesses with the advisory needed to propel successful initiatives. Their extensive network of professionals and businesses allows them to provide diverse industries with the most qualified individuals. Chris Wunder and Chaz Cervino take great care in understanding the unique parameters of a client's business when helping them find the best solution for growth and expansion.

The Takeaway

Leap Brands was able to find and negotiate a previously unsuccessful deal within hours of working on the deal. The buyer and seller were connected through Leap Brand's exclusive network of private equity firms and representatives. Paris Ackerman, The Patels, and Directional Capital agreed on the sale of 64 Rent-A-Centers advancing all of their respective portfolios. The deal further enhanced Leap Brands' expertise in mergers and acquisitions continuing their incomparable work with private equity backed businesses. If you need something done, Leap can help.

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