MBO Management Buyout: PE vs No-PE

MBO Management Buyout: PE vs No-PE I have a client pursuing a MBO management buyout of his company from its public parent. As we assessed different management buyout financing options, he had a big decision to make. Did he want to partner with a private equity firm (PE) or do the financing on an all debt basis through a combination of bank and non-bank lenders (non-PE)? Here is the upside and downside of using private equity for management buyout financing and what he ultimately chose. Benefits of Private Equity Led Management Buyout PE firms run the closing process – Once […]

Leveraged Buyout Single Buyer – Get Quality Financial Projections!

Leveraged Buyout Single Buyer – Management Buyout Consulting Leveraged Buyout Single Buyer:  Provide Multi-Year Financial Projections: Owners of growing companies often get approached by prospective buyers, even when they are not looking to sell. Suddenly, they are faced with a leveraged buyout from a single buyer. But owners that engage in those discussions, often face a challenge as the talks intensify. The challenge is they are talking to a single potential buyer, so they can’t use competition (i.e. interest from multiple bidders) as a way to drive up the Company’s price during negotiation.  One way to create leverage in those situations […]

Selling Your Company To Management

Business owners often overlook selling their company to management as a possible exit strategy. But for solid companies with good cash flows, selling your company to management may yield a higher financial value for the owner and a much brighter future for the business, management, and the seller. Our latest white paper titled, “Sell Your Company To Management: How Selling Your Company To Management Can Be A Smart Exit Strategy”, was recently published on CFO.com. The white paper discusses the benefits of the strategy of selling the company to management, and illustrates it with an example of a company that […]

Partner Buyout: An Opportunistic Way To Build More Equity Value

Partner Buyout: An Opportunistic Way to Build More Equity Value.  Management Buyout and Leveraged Buyouts financing processes can be orchestrated in the same way in order to help individuals buyout a partner or majority owner of a business.  Partner buyouts can be financed on an all debt basis because the partner already has some equity in the business and this equity can be leveraged as the security in the business. Even during this sluggish economy, some of our clients positioned themselves to build much greater business and equity value by buying out other owners or buying out partners.  While some of these opportunities came about because owners […]