Management Buy-out
Risks & Rewards

Pool Your Management Team Where
Dedicated Legacy Meets Profitability

management buy out

Secure Your Future Direction
With Your Existing Team

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 are 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.

management buy out

Access Your Free
Valuable Guide

MANAGEMENT BUY-OUT:
Explains key issues and challenges for the internal transfer of a business, with key steps to success, and the risks and rewards of the process involved.

“You can’t get your business to a different place by following the same road. And you can’t get there without direction”

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

management buy out

Options To Benefit The Seller
And The Management Team

A management team pools resources to acquire all or part of the business they manage. 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.

Pavilion will help maneuver to minimize the risks and manage the rewards.

management buy out
management buy out
management buy out
management buy out

Reduce Risk & Maximize Results

As a business owner, consider all liquidity options available to your company, whether it is a full third party sale or a private equity/capital acquisition, a MBO or a MBI. An owner must be crystal clear about their own objectives/goals, such as maximizing valuation or securing long term contracts for employees.

Determining a sensible valuation at an early stage prior to any negotiations is important. Find the right balance between fair compensation for you while considering the debt levels for your management team. Consider the cheapest source of capital first (senior debt), and the most expensive source of capital last (equity).

Ask yourself truthfully, how prepared are you to go through a third party due diligence process? Making the decision, initiating the process, and concluding the agreement all contain multiple steps, an intricate understanding of both parties’ needs, the success of the company and the team purchasing it.

Pavilion’s team of professionals assists you with the decision making and handles your queries and concerns in confidence while taking the emotion out of your choices. We address steps to minimize risk to the deal.

Thinking Of An Exit Plan?

Contact us for more information about selling your business

  • Our firm is a Private Equity group who has the goal of investing over $300M for acquisitions.  We were having challenges finding and locating the “right deal” in US or Canada.  After much frustration seeking sellers who would qualify, I contacted Pavilion. I must admit after some scepticism, they are introducing me to transactions that have impressed.  They have a complete system for “deal flow” that now means we are on track to reach our investment goals.
    Mark Private Equity
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    Mark - Private Equity
  • After searching for more than 2 years to locate a fit and value, without success, we contacted Pavilion to see if they could help.  We retained Pavilion to help us acquire a company that fit our investment criteria. Within 24 hours they introduced me to sellers that I wasn’t aware of and the phone call with the seller went very well.  We are now in the Due Diligence phase and I’m very pleased that our transaction is on track for success.
    Randy Strategic Buyer
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    Randy - Strategic Buyer
  • Dear Stephen: On behalf of Norm and I, just a short note of thanks to you and the team at Pavilion for your work assisting BC Comfort senior management via our...
    Robert Noel President, BC Comfort Business Value Gap Analysis
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    Robert Noel President, BC Comfort
  • Greg & Team Thanks so much for making the sale of Nowak Rope.  Without your team working so hard we wouldn't be where we are today.  Retirement is feeling pretty good...
    Sigmunt & Lisa NowakNowak Rope Ltd. Acquired by Strategic Buyer
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    Sigmunt & Lisa Nowak Nowak Rope
  • When Pavilion presented me the valuation and showed how they had used over 20 different valuation methods I was confident that we have the most accurate and unbiased...
    City of Surrey Business Valuations
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    City of Surrey
  • I tried to sell my company on my own and wasn’t getting anywhere. After six months working with the team at Pavilion, there were ten interested parties...
    Ross Ireland3DS - Three Dimensional Services Acquired by Strategic Buyer
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    Ross Ireland
  • My husband passed away suddenly and the business was left to me to operate. I needed to sell it quickly and achieve top value. The Pavilion team achieve success by selling...
    Business Owner’s WidowWindsor Security Ltd. Acquired by Multiple Strategic Buyers
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    Business Owner’s Widow Windsor Security Ltd.
  • Thanks to work completed by the Pavilion Team, I could focus on running my business rather than dealing with all the details involved in listing and selling the company. They have been...
    Manney Transport Ltd. Acquired by Strategic Buyer
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    Manney Transport Ltd.
  • I sold my business at the top end of the market value – primarily because of the team at Pavilion. They engaged 27 different bidders who were mostly strategic buyers who wanted a...
    Val Varga VVV Engineering Director Acquired by Strategic Buyer
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    Val Varga VVV Engineering Director
  • The Pavilion team exceeded my expectations. They provided me with a Valuation that surprised me, revealing a lot of extra value that I hadn’t considered...
    Edward OskoValley Personnel Ltd. Share Sales to Strategic Buyer
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    Edward Osko Valley Personnel Ltd.
  • I had been searching for synergistic companies to acquire for nearly three years – without success. I engaged Pavilion for their assistance and in less than 4 months they identified...
    Suren Ramlochun Phoeniz Fire Acquired by Strategic Buyer
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    Suren Ramlochun
  • The Pavilion team negotiated with multiple parties and achieved great value, price, and terms that resulted in more $$$ value. They have kept their promise...
    Dave Andrews Director, Penguin Meats Acquired by Strategic Buyer
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    Dave Andrews Director, Penguin Meats
  • We are very pleased with the transaction process and advice from the team at Pavilion. They implemented an outreach program, secured multiple bidders and help...
    Ron BottingDirector, Optinet Acquired by Strategic Buyer
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    Ron Botting Director, Optinet Systems Inc.
  • I’ve known about Pavilion for only a short while before recruiting their assistance to sell my business. They did an awesome job and achieved a good price. Transition terms where...
    Nu-Tech System Ltd.Share Sales to Strategic Buyer
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    Patti Tan Nu-Tech System Ltd.
  • Thank you for helping us through the valuation, listing and sale process and quite the process it is! We are still fumbling our way through the smoke with the transition, but are...
    Brenda NobleNoble Tractor & Equipment Ltd. Acquired by Strategic Buyer
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    Brenda Noble Noble Tractor & Equipment Ltd.
  • As one of the largest companies in our region running a high profile business in a competitive environment, confidentiality and privacy were major concerns when I was selling...
    Mud Bay DrillingAcquired by Strategic Buyer
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    Gordon Gibbons Mud Bay Drilling
  • I’m an accountant and a CBV specialist – after 3 years trying to sell my business without help, I enlisted the help of Pavilion. What a difference professionals make – they researched and...
    Accountant, CBV SpecialistGibbs Delta Tackle Acquired by Strategic Buyer
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    Accountant, CBV Specialist Gibbs Delta Tackle
  • Pavilion valued my business at between $17.5M to $19.5M and so far they have generated over 46 enquiries from strategic buyers across Canada and USA. They researched...
    Russ HebblethwaiteAcquired by Strategic Buyer
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    Russ Hebblethwaite
  • It was really important that my business was listed and sold without disrupting day-to-day activity for my employees and customers. Pavilion was able to handle the sale with...
    Navneet DhanjuAcquired by Strategic Buyer
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    Navneet Dhanju
  • The Pavilion team has been awesome and instrumental in getting the deal done. We are glad it was negotiated with multiple parties and achieved great value, price and terms...
    Dave BalshawDirector, Concorde Glazing Acquired by Strategic Buyer
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    Dave Balshaw Director, Concorde Glazing
  • The Pavilion team surprised me with how their research and outreach process identified numerous buyers of whom I was not aware. Their privacy approach enabled the complete...
    Mark TrotzukDirector, Eco Boardroom Apparel Acquired by Strategic Buyer
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    Mark Trotzuk Director, Eco Boardroom Apparel
  • The Pavilion Team did a fantastic job to help me sell my business, very competent and their support was invaluable.
    Bryan RobinsonAtlas Anchor Systems Acquired by Strategic Buyer
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    Bryan Robinson Atlas Anchor Systems

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