Management Buyout Financing Challenges: How Lantern Capital Advisors helped a client buy his division from the owner. Situation: A divisional manager wanted to buy his division from the owner who was having financing challenges with the bank. How Lantern Capital Advisors helped execute the management buyout: Lantern helped the manager negotiate the purchase price and terms of the management buyout and secure $7 million to finance it (management buyout financing). As part of the transaction, this division was spun out into a separate entity. The manager invested $200,000 and received a 25% ownership stake in the new Company. If the […]
Category: Selling Company
When Is The Right Time To Sell Your Business?
One of my favorite shows is “The Office”, I’ll leave the humor out of this post, but the show only exists because the original creators took a chance at producing “something new”. Does anyone even care or know what they did before? What made Simon Cowell so famous in the United States was not producing Teletubbies, but telling contestants the truth on the hit show, American Idol. He’s onto something new now, and we’ll probably all take some time to watch. Business is picking up. Things are looking good. Your sales team has really delivered. But you wonder, is now […]
Losing Your Company In A Bad Roll Up…Pink Sheet Company And Pink Slips
Recently I was contacted by an entrepreneur that I had met years before (but never worked with). He found me through a friend. When I originally met him, he was trying to put together three small companies, one of which he owned, into one combined business and buyout the other owners. He ran a small distribution and logistics company and when I asked him how he had been, I got a very long answer. This entrepreneur in an effort to grow his business decided to sell it to a publicly but thinly traded company (often called ‘pink sheet’ company). For […]