What we do
Business Acquisitions
Tenet Equity helps acquisitive operators and sponsors close more efficiently by unlocking real estate value embedded in target companies. Our capital complements traditional structures by reducing equity requirements and improving financial outcomes—without disrupting operations.
Why Use Tenet Capital for Acquisitions?
When acquisition targets own valuable real estate, Tenet can step in as the buyer, allowing you to redeploy that capital back into the deal. The result: a lower purchase multiple and a more capital-efficient path to close.
This approach is especially effective when:
The acquisition includes key operating facilities
The buyer wants to minimize equity dilution
There’s a need to increase IRR or reduce hold-period capital costs
The sponsor has multiple deals in motion and needs replicable capital structures
Real Example
This is simple math. Using Tenet’s sale-leaseback capital to fund acquisitions often improves purchase multiples and shareholder returns, especially for PE sponsors and acquisitive companies.
As a REIT, we’re structured to own real estate. That means we can accept a lower return threshold, enabling us to pay a higher multiple for real estate than most operators would require on their own balance sheet.
Real Example:
- Acquisition target: $10MM EBITDA, $60MM enterprise value (6.0x multiple)
- Included: Two key manufacturing facilities
- Tenet sale-leaseback: $20MM at an 8.00% lease rate
- Rent multiple: 12.5x
Result: Lower Purchase Multiple and reduced required equity to close.
Why This Approach Works
Tenet’s acquisition capital is designed for private equity sponsors and acquisitive operating companies who want to maximize flexibility and financial performance during transactions.
By converting real estate value into capital, buyers can:
Improve IRR and shareholder returns
Minimize equity dilution and preserve borrowing capacity
Close faster with less friction
Maintain uninterrupted operations post-close
Whether you’re executing a single strategic acquisition or rolling up multiple targets, Tenet provides a repeatable structure to enhance your capital efficiency.
Explore Related Solutions
Corporate Recapitalizations
We help our customers access liquidity in their real estate for such things as deleveraging, corporate reinvestment and growth initiatives, shareholder buyouts, dividends and exit sales.
Tax Strategies
We are mindful of tax implications associated with property sales and can provide creative structures to help minimize or defer tax.
Construction Funding
We provide 100% funding for new construction or the acquisition/ renovation of existing buildings.
