Management Buyout Assistance

Management buyouts (MBO) often involve a group of employees who want to acquire all or part of the company they operate. In some cases, the owner or owners approach the management team because they are contemplating retirement and want to leave the business in capable hands.

Acquisition Advisors guides the parties through the buyout process. We set up the financial structure of the deal, determine fair market value, identify key financial partners, conduct due diligence and keep the business relationships intact so the deal is successful.

Typical reasons for purchase of a business by its existing management team include:

• Certain parts of an organization no longer are seen as core areas of the business.
• A company is in financial distress and needs cash.
• Parts of acquisitions are not wanted.
• In a family business, succession issues involve the owner’s retirement.
• The management team stands to gain independence, autonomy and a chance to influence the strategy and future direction of the company and the prospect of a capital gain.

An MBO can be attractive to the seller for many reasons, including strategic considerations, confidentiality, familiarity and speed. With an MBO, the seller is usually more comfortable releasing confidential information to people he/she knows and trusts. An MBO also allows the seller to continue dealing with a management team that it has an established relationship with. In addition, an MBO usually results in a quicker deal than typical business purchase transactions, allowing the seller to move on with future plans.

For more information about management buyout assistance visit www.usmanagementbuyout.com