MANAGEMENT BUY-OUTS

Sometimes the most logical option for a corporate restructuring is a management buy-out.  A management buy-out (MBO) is an acquisition of a company by management, or an investor endorsed by management.

This is an opportunity to achieve an equity stake and/or enhanced compensation for doing the same job and generating growth by incentivizing management.

While managers and employees are often the most logical people to be the next company owners, they rarely possess the financial resources necessary to make the purchase.

Understanding this type of transaction and getting it done requires sophisticated structuring, which calls for special expertise. 

Miller Advisory Services understands the complexity. We can help establish a range of value, evaluate financing and structuring alternatives, prepare key documentation, help negotiate and structure the transaction, as well as coordinate all the parties involved.  

The Management Buy-Out Process:

Preparation

The first step to a management buy-out is to obtain ownership’s authorization. We protect the client’s confidential information throughout the process.

New management should have a vision for maintaining and growing the company, a track record of success, and the ability to prospect new business and relationships to take the company to the next level. We work hard with management to convey their strengths in written, digital, and live presentations.

Capitalization 

Utilizing our solid relationships with institutions, financial professionals, attorneys, accountants, investment bankers, and other financial professionals, we help clients identify sources of equity, debt, and mezzanine financing. We also help prepare management for prospect meetings and even conduct them, helping manage the competitive process among prospects to generate the best possible deal for management.

Implementation

Miller Advisory Services is a resource during the transitional stages as the company takes its first steps under new management. 

We take care of the buy-out process so that you can get back to managing your company. Contact us today at 630-904-1600.