Management Buyouts
When an owner, corporation, or private equity fund plans to divest a company or division, the management team may have the opportunity to purchase that business unit. However, many times management teams are never presented with the chance to buy the business and do not ask for the opportunity. This is often due to unfamiliarity with the process or reluctance in their ability to finance the transaction.
GBQ Capital represents the management team throughout the entire process, whether that is preplanning before the initial approach to the ownership group or after transaction discussions have taken place. We help management assess feasibility, prepare formal proposal materials, determine and negotiate appropriate valuation, capital structure, and contract terms.
Given that one of the primary hurdles in completing a management buyout is financing the transaction, GBQ is able to add considerable value by leveraging our extensive relationships with debt and equity sources. This affords our clients with far-reaching access to capital, which provides them the greatest probability of financing the transaction. The motivations to pursue a management buyout include:
- Desire to reward existing management
- Complete a confidential transaction
- Provide career stability to employees
- Maintain corporate culture
M & A Services: