MANAGEMENT BUY-OUT (MBO)
Owning a business is a commitment to a complete entity – an asset perhaps being greater than the sum of its parts. Having customer and employee loyalty and satisfaction, you may be considering your next steps and who that might involve.
You may already have considered the future direction of your business:
- Capital Acquisition
- Exit Strategy
When owners decide to sell their business and management emerges as a prospective bidder, our team of professionals has the experience to guide all parties through a successful transaction.
Pavilion will help the maneuver to minimize the risks and manage the rewards:
- Consider the right time for growth or dissolution
- Ensure appropriate positioning
- Determine if your management team considers your company their next best personal investment
MBOs tend to be very complex transactions. To be successful, an MBO must be structured so that it is beneficial to both the vendor and management.
A successful MBO requires making a successful bid and then financing the bid in a way that provides a meaningful equity position to the management group.
Pavilion begins working with management teams in the early stages of their planning and negotiation to try to assess, shape and optimize the process.
We have expertise in a variety of financial structures and options and comprehensive knowledge of financiers and investors who focus on management buy-outs.
You can’t get your business to a
different place by following the same road.
And you can’t get there without direction.
LONGEVITY AND COMMITMENT
An MBO is appealing to professional managers because of the greater potential rewards from being owners of the business rather than employees. MBOs with management teams have more invested – and a deeper desire to reap financial rewards in the future of the company.
There is a deeper level of commitment and potential for future growth with an MBO.