# Pre-call prep on Coyote Studios merger structure & cost savings

**February 26, 2026 at 11:19 AM** · 42m 11s

### Bottom Line
The team is preparing for a call with a counterparty to present a proposed tax-free reorganization structure for merging Coyote Studios' operations, focusing on validating significant cost savings and operational consolidation.

### Key Takeaways
- **Merger Structure:** The team plans to propose a 721 tax-free contribution of assets/liabilities into a single entity to simplify the merger of transportation and pro-supply operations.
- **Cost Savings:** Significant personnel savings (~$15M) are projected by consolidating fleet teams and reducing headcount from 316 to 177, with additional savings from insurance and real estate.
- **Open Issues:** Key items remain unresolved, including the treatment of union agreements, brand IP ownership, and the potential consolidation/shutdown of the Atlanta footprint.
- **Counterparty Communication:** The team notes a disconnect between what the counterparty's leadership says publicly (downplaying studio business) and what they are privately working on with the team.

### Action Items
- [ ] Finalize and prepare to present the summary dashboard showing the proposed merger structure, combined entity org chart, and projected cost savings ($15M personnel, $800K-$1.2M insurance). — @Speaker B `high`
- [ ] Obtain and review the union white paper (Commercial Services Union agreement) to understand assignment/contribution requirements and potential liabilities. `high`
- [ ] Analyze the Atlanta footprint (TR vs. counterparty's operation) to decide on a consolidation/shutdown strategy and quantify the potential rent/expense savings. `medium`
- [ ] Clarify and validate the specific list of assets and 'relevant supporting liabilities' (e.g., operating leases, union agreements) to be contributed in the reorganization. `medium`
- [ ] Request the detailed personnel information from the counterparty to validate the $15M payroll savings projection and headcount reduction plan. `medium`

### Topics
Merger Structure & Tax Reorg, Cost Savings Analysis, Personnel Consolidation, Real Estate & Lease Strategy, Counterparty Communication, Open Diligence Items

**Sentiment:** neutral

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*Generated by Call Assistant on 2026-04-09 11:46*