A Leverage Buy-Out involves running the company by professional managers, who become owners after the deal is completed. Hence the challenges are two-fold, managing the investors and helping the business with its day-to-day operations.
The deal advisor not only needs to help with selecting the right financial backers, they should also have sufficient management bandwidth to support running of the business initially, if required. It is important to note that the parties involved in MBO/MBI transactions – Investors, Management and Sellers pursue separate goals. We recognise this and try to manage expectations from an early stage and suggest realistic solutions.
- Assessing the viability of the potential targets for MBIs and prepare appraisal report on risk-return trade-off. Support the management in developing a detailed business plan.
- Conducting due-diligence and prepare a valuation report with sensitivity analyses
- Reviewing offers received in detail for MBOs
- Advising on optimal capital structure for completing the transaction
- Helping in raising the appropriate debt and equity finance
- Support management in negotiations with deal terms with the involved parties, including banks, vendors and investors
- We maintain in-house database of financiers, making the process of finding investors for closing the deal easier
- Unbiased and independent advise since we do not fund the project
- Helping management and owner in negotiations
- Providing innovative solutions to complex problems that may arise during the transaction
Sign up as a Leverage Buy-Out (LBO) and learn more about the potential investors who are interested in buying-out your investments.