Management buyouts are a unique type of acquisition. Normally in this situation management purchases all of the shares from the current owner of the business. To do this, management teams need a management buyout solution capital provider. These type of deals are ideal for large corporations who wish to divest one of their subsidiaries or sell divisions that are no longer an integral part of their business. This type of transaction is also commonplace in private enterprises, where the owners wish to retire and has a strong management team in place. At Attract Capital, we understand that most entrepreneurs lack the necessary structuring and funding know how to complete their deals. We have developed a management buyout solution that allows entrepreneurs to easily access the capital they need in a structure that works to their advantage.
Attract Capital has been refining its management buyout solution for decades. We are experts in structuring deals and ensuring our clients have sufficient financing to achieve their organizational goals. The reasoning behind a management buyout is evident. Management understands the business better than any other party and has identified a strategic plan for the organization. When searching for additional financing to close a buyout, it is essential that entrepreneurs consider all options available to them. Neither banks nor investors offer an optimal management buyout solution. Typically, banks have viewed management buyouts as too risky, due to the minimal equity being contributed by management. On the other hand, Investors often have their own views of how to grow the company and their capital can be expensive. This makes an investor a less than ideal management buyout solution provider. Attract Capital has designed a management buyout solution that utilizes mezzanine lenders as the capital source. Mezzanine lenders offer a middle of the road management buyout solution. In exchange for paying a higher interest rate to the lender, the management team can raise most of the capital needed and have the autonomy to run the business their way.
Mezzanine financing is advantageous as it provides entrepreneurs with the appropriate financing to not only acquire the specific organization, but also to grow their company. This is supreme as it provides the new owners with flexibility and allows them to achieve their strategic growth plans. Our team has been involved in scores of transactions totaling in excess of £500 million. We have advised many management teams on how to implement the best management buyout solution to achieve their dream of ownership. Contact us today to become our next success story.