|
Management Buy-outs
What is a Management Buy-out (MBO)?
In simple terms an MBO is when an
existing management team within a company or organization
secures funding, buys out existing shareholders and then they
runs the business which originally employed them.
Buy-outs can vary in size from a $10 million
dollar deal to a several billion dollar deal. Some can be
straight forward transactions while others can be very
complex.
One of the key elements of an MBO is that the
individuals of the management team actually put their personal
money into the deal in return for an equity stake in the
company.
The reason that this is key is because it
shows the investment bankers or private equity investors that
there is a legitimate commitment by the management team to
make this a successful and profitable venture.
Now what a management team puts into a deal
will vary sharply as it has to represent a meaningful
investment in the deal, which equates to a commitment in the
eyes of the investors in the buy-out.
With that said, NAMC Worldwide has
relationships with various private equity firms globally that
focus solely on management buy-ins and buy-outs. We have the
ability to assist management teams that may be looking for
funding for a buy-out situation.
So if you find that a management buy-out is in the
cards for your management team then contact us at 888-463-9237 or
NAMC Worldwide
Confidentiality
Professionalism
Communication
|
