Anybody have experience structuring Management Buyouts?

searcher profile

August 20, 2019

by a searcher from Arizona State University in Phoenix, AZ 85004, USA

I have a close friend that is at a company and the owner is looking to exit and the MT (himself included) is considering trying to acquire the company (2.5M EBITDA with PP around 15M).

They have current equity stakes they're looking to roll into the new deal.

I don't have any experience with how these are structured, who ideal equity partners/investors are for this type of transaction, how lenders view it, etc.

I'd love to get him in touch with those of you who understand this world - thanks!

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commentor profile
Reply by a professional
from Walsh College of Accountancy and Business Administration in Detroit, MI, USA
Tim, I have helped many Management Teams buyout the owners and they included bank financing. The structure of the buyout is important so that the existing management team does not trigger tax on their rollover and so that they obtain a step-up in the tax basis of the assets of the company. Send me an email at redacted and we can set up a call to discuss.
commentor profile
Reply by a professional
from William Mitchell College of Law in Minneapolis, MN, USA
Hi Tim. I’ve helped many teams do Management buyouts. Happy to share my experiences. Email me redacted and we can set a time. Good luck!
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