Owned and operated 27 Applebee’s International units in Florida, Georgia, Alabama and Texas.
Brookwood was hired to explore strategic alternatives for the company, including a possible sale.
Engagement Process and Outcomes
Existing Structure – Applejam’s real estate assets included 15 fee simple units and 7 ground lease units. Additionally, Applejam became an ESOP in November 1997 and was 100% owned by its employees.
Brookwood Process – Brookwood contacted both strategic buyers and private equity groups who would partner with management to continue to grow the company.
Excellent Results – Brookwood successfully sold the company to a strategic buyer. Applejam’s ESOP structure added a component of complexity to the transaction as Brookwood worked through the ERISA requirements with the ESOP’s trustee and the ESOP’s counsel. Brookwood negotiated a financing structure that included both traditional senior financing as well as a sale/leaseback.