Hey guys,
I'm considering an acquisition of a $3mil equipment manufacturer. 20+ year-old business, seasoned employees (Union Shop).

I will soon be starting the financing piece of the puzzle and got to wondering about creating ways I can acquire the financing and also retain top talent (2 separate issues, but still it got me thinking....).

As a potential option to A) Boost my down payment and B) Secure the current key talent has anyone ever structured an acquisition whereas you solicit/offer the current management a buy-in opportunity? Similar to an MBO/MBI structure I believe.

Specifically speaking- (with seller consent) , I'm considering approaching current management and offering them minor ownership in the company in exchange for financing a portion of the acquisition.
Thoughts? I'd appreciate any input. Thanks