Henry Bacon ImageClient:

Family ownership built Henry Bacon into one of the largest building material retailers in the Northwest. Family members decided the time had come to sell this prosperous firm with sizable locations in Seattle, Everett, and Issaquah.


Most companies in the building materials industry prefer to own their locations, but the tax consequences of selling these properties can place a significant burden on any prospective transaction. Management was not interested in a lengthy transition period, so identification of financial buyers were ruled out.


Numerous parties had signaled interest in acquiring the company in recent years. These formed the basic prospect list to which Exvere added several from its industry contacts. An offering memorandum was prepared and circulated to a select list of qualified prospects. Responses were received from both private and public firms suggesting a range of values and deal structures.


BMC West was selected to conclude a transaction that included cash for the business assets and real property utilizing a Sec. 1031 Exchange provision to partially defer the tax consequences. This satisfied the original objectives of liquidity and investment diversification, while offering stability and future growth opportunities for the employees.