Accu-Properties, LLC, CA
A small manufacturing company wanted to increase its manufacturing space, but did not want to take on ALL of the necessary debt required to purchase a larger facility.
This LLC was formed to facilitate the purchase of a 10,296 sq. ft. commercial building with additional manufacturing space. WTG Partners is a voting and economic member of the partnership LLC and enjoys a steady return on investment. The manufacturing company now has a much larger space for manufacturing its products and has experienced substantial growth in revenue as a result. Because we are partners, the manufacturing company had a significant influence in setting a desirable lease rate. We look forward to many years of working together and hope the company needs more space in the near future. We will be there to help.
Magnum Engineering, Sole Proprietor, CA
This was a small CNC machine shop with a single owner and machinist.
After many successful years of serving the Aerospace industry, the owner was looking to sell the business and was thinking about retirement. He desired to work for several more years, but knew eventually he would have to close down the shop if he didn’t do something. The owner contacted us to purchase his company; a purchase of a one man business was not in our plans. However, we did find an alternate solution for him. One of our partnership companies, which also had CNC machine capabilities, was looking to add capacity to their existing operations. Our partnership company purchased ALL of the assets of Magnum Engineering and added them to their existing equipment and capabilities. As a special bonus in the transaction, the prior owner was employed by our partnership company until his retirement several years later.
WTG Partners has partnered with several other businesses;
here are a few more short examples of partnerships we have made.
SWING VOTE PARTNER
We were brought in as a third partner to a business to be the deciding vote when the original two owners do not agree on a decision.
Disagreements between two partners can bring business to a standstill. Because this was a partnership, a corporate LLC was formed and WTG Partners is now a voting member of the LLC. We vote at board meetings only when a disagreement/deadlock has arisen between the two other voting members.
The CEO of one of our partner companies was a second generation of the family to lead his business.
The CEO wanted to invest in and grow the business, but his father (who was the current majority owner of the business at the time) wanted to retire and needed liquidity and security. WTG Partners structured a buyout of the father’s equity. We included a buyout clause so the current CEO can buy back the equity from us in 5 years and can re-purchase his entire company. We hope he does not elect to do so, as he is doing a fantastic job.