Buyouts and Leveraged Transactions
For a privately-held business, a sale of the firm to senior management and/or a private equity group is often preferred to a sale to a strategic buyer because it allows for the continuity of the business in a substantially unaltered form, while simultaneously providing liquidity for the current shareholders.
Called management buyouts (MBO’s) or leveraged buyouts (LBO’s), these transactions usually involve substantial amounts of debt financing. The process can be more complicated than a "straight-up" acquisition due to the participation of multiple parties. The principals and their attorneys, private equity groups, commercial lenders, and various third-party consultants all have their own priorities, and the coordination of all participants is essential to a timely and successful closing.
With our extensive contacts within the private equity and leveraged finance community, Grace Matthews has the knowledge and experience to guide all the parties towards an optimal outcome.
Case Studies