We have more than 20 years of combined experience in Management Buy Outs (MBO’s) and Management Buy-Ins (MBI’s) and advised approximately 15 Management Teams and shareholders in achieving a successful Buy-Out or Buy-In.
From our experience we know that Management Teams and Shareholders have many questions about a MBO/MBI process:
- What if the shareholder wants to sell the company to a strategic buyer?
- How to value the company?
- Is it true that strategic buyers always pay more?
- What is an envy factor and which factor is suitable for our MBO?
- How to finance the MBO/MBI?
- What are in general the investments to be made by the Management Team?
- How much can we borrow from a bank and what is an acceptable leverage?
- How to structure the MBO?
- Are shareholders contributing money in the MBO process?
- What about “good leaver and bad leaver clauses”
- What to do when our shareholder forces us, as Management Team, to use his adviser and/or his auditor?
- How can we get a bigger stake in the company if the Management Team is performing above target?
- Investors (usually private equity firms) approach us, when to choose for a private equity firm?
- What experience does Ehrhardt Leus and Associates have with private equity firms?
- Our investor wants an exit, what about a secondary Buy-Out?
- How should we, as a Management Team, act when our shareholder(s) would like to sell the company in a controlled auction where a number of potential acquirers are invited?
Of course you will have many more questions. We are ready to meet with you and brainstorm about your specific business case, the possible approach and the route to take. We also believe that it is important in this complex process to have your own independent adviser to guide you and support you in the many challenges and possible pitfalls. What you will find with Ehrhardt Leus & Associates is an experienced senior team who has been there, done it and seen it.
