A. ARNOLD WORLD CLASS RELOCATION HAS BEEN ACQUIRED BY THE MANAGEMENT TEAM
ABOUT THE TRANSACTION:
A. Arnold World Class Relocation (“A. Arnold” or the “Company”) has been acquired by members of the Company’s management team (“Buyers”).
Established in 1905 and headquartered in Louisville, Kentucky, A. Arnold has developed into a leading independent moving and relocation company. The Company serves individuals, families, corporations, and organizations throughout the United States and internationally. Through the A. Arnold Group, the Company provides a broad range of relocation, transportation, logistics, and commercial services. Its integrated capabilities allow customers to coordinate complex moves through an experienced organization.
A. Arnold World Class Relocation specializes in full-service domestic relocation for individual households and multinational corporations. The division manages relocations throughout the United States. Additionally, Sterling International, Inc. provides international relocation services for households and commercial customers. Its capabilities support clients moving employees, operations, and personal belongings across international markets. A. Arnold’s Commercial Services division provides business solutions for companies of various sizes. These services include logistics, transportation, and supply chain management.
MANAGEMENT BUYOUT AND OWNERSHIP TRANSITION:
The transaction transfers ownership to members of A. Arnold’s existing management team. As a result, the Company gains new ownership while maintaining experienced leadership already familiar with its operations. A management buyout may provide several advantages when an established leadership team is prepared to assume ownership. In this case, the transaction creates continuity for customers, employees, and other stakeholders. Moreover, the Buyers already understand the Company’s operations, customers, employees, and competitive position. Their existing knowledge helps reduce disruption during the ownership transition. The transaction also provides the sellers with a path to liquidity while preserving the Company’s established organization. At the same time, management gains the opportunity to participate directly in A. Arnold’s future ownership and growth.
ALLSTON ADVISORY GROUP’S ROLE:
Allston Advisory Group advised both parties in connection with the management buyout. First, Allston analyzed the Company’s financial performance and established a mutually-acceptable transaction value. Next, the firm helped structure a transaction that addressed the objectives of both the sellers and management team. Financing represented a critical component of making the transaction executable. Because the buyers had modest collateral available, conventional acquisition financing presented challenges. Allston therefore assisted management in obtaining financing through an SBA-guaranteed 7(a) loan. In doing so, Allston worked with the parties and financing sources to support the proposed transaction structure. The financing allowed management to complete the acquisition despite the limited collateral available.
The transaction demonstrates how thoughtful structuring may facilitate ownership succession when capable managers lack substantial personal capital or collateral. More broadly, the management buyout provided a practical succession solution for an established company with more than a century of operating history. It also positioned experienced management to lead A. Arnold through its next chapter of ownership.
ABOUT ALLSTON ADVISORY GROUP:
Allston Advisory Group is an independent mergers and acquisition advisory firm serving privately held, lower middle market companies. The firm provides mergers and acquisitions, business valuations, and exit strategies. Allston works closely with business owners to understand their objectives and prepare their companies for the transaction process. The firm then manages a disciplined and confidential sale process from initial preparation through closing.
For additional information on this transaction, please contact one of our advisors.
