Leveraged management buyout acquisition funding
Leveraged management buyout services should involve working with management to structure the buyout of the corporation, subsidiary, division or product line from start to finish. After a buyout analysis, if it has been determined worthwhile to incur the time and expense to proceed with a buyout effort, the four-step process begins: bid, negotiate, finance and close.
In situations where firms are actively for sale and are soliciting bidders it is necessary to quickly assess the company’s value from the management’s perspective as well as from the perspective of other competing buyers, and to quickly evaluate the company’s ability to support financing in order to determine the buyout options available to the employees. This is critical in enabling managers to compete on an equal footing with other bidders.
It is a common perception that management buyout purchases take substantially longer to consummate than traditional transactions. This is not always the case and should not be allowed to deter either side of the transaction.