Transportation Rentals Corporation

Transportation Rentals Corporation

Fort Myers, Florida

has been acquired by

Avis, Inc.

Garden City, New York

Capital Alliance Corporation initiated
this transaction and assisted in its closing.

Transportation Rentals Corporation

The Selling Company: Transportation Rentals Corporation operated as the fourth largest franchisee in the Avis Rent-A-Car organization. With a fleet value of over $40 million, this company operated in the very high growth rate markets in areas around Fort Myers/Naples, Florida and in most of West Virginia.

Why the Company Was Sold: The majority shareholder was ready to phase out of the company and establish liquidity for his equity. His wife and two sons had significant minority positions but had no involvement in operating the company.

Capital Alliance’s Performance: Being selected to represent the selling shareholders was an accomplishment. Over 65 of the best known middle market intermediaries were contacted and screened. Five intermediaries made presentations to the selling company’s board of directors. Capital Alliance was the unanimous choice of the board. Upon engagement, Capital Alliance confidentially contacted a number of prospective acquirers resulting in four acquirers visiting the company and four acquirers making offers.

Terms of the Transaction: The major shareholder was able to immediately retire after the closing. The transaction involved an all cash payment at the closing with an escrow for environmental issues. This cash payment exceeded the highest expectations of the shareholders. It was the result of implementing a sophisticated “silent auction” using superior negotiating techniques that have taken years of experience to develop.

The Acquiring Company: Avis Inc. is the second largest automobile rental company in the U.S. with corporate revenues in the $1.2 billion area. Approximately 70% of the U.S. revenues under the Avis name accrue to the corporate organization with 30% flowing through independently owned franchises. This transaction was the largest ever completed by Avis Inc.

© 2017 Capital Alliance Corporation

The world's leading M&A alliance