Leveraged Recapitalization & Management Buyout
Leveraged Recapitalization
Leveraged recapitalizations are typically for business owners who are not ready to retire. In the typical leveraged recap, we find the appropriate debt source. In some instances, a private equity group augments the capital for a minority position in the firm.
The owner can take cash out the company. The debt obligations are secured by the future cash flows of the business
Management Buyout
In an MBO, the internal management team is given the opportunity to purchase the company. Often lacking the capital, the team hires us to find the right private equity investor, and the best debts source(s). In some occasions, the debt provider is a bridge to a permanent financing.