Management Buyouts in Today's Environment
Written by Jay Turo on Tuesday, July 10, 2007
Frothy private equity markets and the desperate need of financial and strategic financiers/acquirers to identify and incentive-ize quality management partners have combined to create a heightened interest in management buyouts (MBOs). An MBO is a form of leveraged buyout (LBO) used to transfer all or part of the ownership of a company to the individuals with the primary operational responsibilities for the enterprise. Both debt and equity investors are particularly interested in financing MBO because of the three "I's":
Management Buyout Financing in Today's Environment Management buyouts are financed through a combination of senior debt, subordinated debt, and equity. The key to bringing an MBO to fruition is to structure a transaction that addresses the concerns and objectives of each investor group.
Value of an Intermediary in the MBO Process In the management buyout process, a competent intermediary can:
If you are connected with a company that may be a candidate for a management buyout, or one that requires capital and/or is interested in selling all or part of their business, we encourage you to contact us at 800-506-5728 or at [email protected] for a completely confidential review.
Share this article:
Products & Services
Growthink Around The Web
Best of Growthink
Looking for Opportunities Now? How to Write a Business Plan for Raising Venture Capital Top Seven Capital Raising Mistakes 20 Reasons Why You Need a Business Plan Top 10 Private Placement Memorandum (PPM) Mistakes The Secrets to Their Success? 25 Quotes From Famous Entrepreneurs The 6 Untold Reasons Why Businesses Fail 7 Entrepreneurs Whose Perseverance Will Inspire You Top 7 Myths About Starting a Business Business Exit Strategy: Planning to Sell Your Business How to Make a Business Plan Capital Raising Resource Center Investing in Private Equity via Your IRA