CTS - Sale Leaseback

THE TRANSACTION:

Founders Investment Banking, LLC is pleased to announce that it has advised on the successful sale leaseback of the corporate headquarters for Computer Technology Solutions (“CTS”).

THE COMPANY:

CTS is headquartered in Birmingham, Alabama with locations in Mobile, Alabama and Atlanta, Georgia. CTS is an information technology professional services firm that offers consulting and outsourcing solutions to enterprise-level and selected other clients in its targeted geographic and industry end-markets. CTS was founded on and has successfully pursued a vision to solve business problems by developing technology-focused solutions that create competitive advantages for its clients, with a particular emphasis on application development, integration and maintenance, quality assurance, and business intelligence.

THE SOLUTION:

Through years of effort and hard work, CTS’s ownership group built significant value in two primary assets: 1) their core operating business had enjoyed revenue and profitability growth that significantly enhanced the enterprise valuation of this entity, and 2) a real estate property that served as CTS’s headquarters experienced price appreciation and loan amortization that created an attractive equity position. As with many companies, the value of these assets were highly related. With guidance and advice from our professional team, CTS’s shareholders engaged Founders to execute a sale leaseback, with a well qualified real estate partner, that achieved the two primary objectives identified for the transaction:

• monetized equity embedded in the corporate real estate which permitted shareholders to realize liquidity and diversify wealth; and
• maintained operational control of the property through a long-term lease with renewal options.