Management buyout fininancing is where the exixting manager buys the company. This is similar to any other aquisition but in the case the the existing manager can buy some or all parts of the company. The reason for a management buyour, from the eyes of management, could be to save their jobs. If the owners of a company decide they will close down, or sell to an outside buyer who will replace the current management, the managers might decide that the only way to benefit in the situation is to take ownership in the company. This way they can financially benefit from the success they bring to the company by receiving the profit that the company generates.
Need help through the maze of funding alternatives?
Management buyout financing will require that you work closely with:
- Private equity investors
- Investment bankers
- Commercial Lenders
To produce the results that will lead you through the maze of corporate funding alternatives to finance the assets and cash flow of the merger or acquisition at a competitive rate, you will need to properly structure the transaction by using leveraged financing.
Management buyout financing alternatives, include:
- Revolving lines of credit
- New private equity placement
- Equipment leases or sale leasebacks
- Bridge or term loans
- Commercial real estate loan