Buy Outs

A management buy-out (MBO) usually occurs when the owning manager is planning to retire or a company decides to divest / outsource non-core activities. Next to talented employees, the management is one of the greatest assets of a successful company. Their dedication to the business gives the management team invaluable knowledge and insight about a company or market. Therefore, if the management is interested in buying out its shareholders, a successful continuation of the business is highly probable.

A management buy-in (MBI) tends to take place when the performance of a business is below the shareholders’ expectations and an external management team buys an ownership stake in order to replace existing management and improve the business.

Palladium Capital works hand in hand with experienced and proven management teams who are pursuing a buy-in or a buy-out. As part of this cooperation, the management team provides an in-depth corporate and market analysis and develops, with the support of Palladium Capital, a strategic development plan for the business. Palladium Capital deals with the transaction-related and financial matters which require more specific financial expertise to:

• secure an equity partner for the buy-out
• advise on the deal structure and financing structure (including debt advisory)
• carry out financial modelling and prepare a valuation of the company
• manage the term sheet negotiations between the shareholders, the equity partner and
  management team
• coordinate legal and tax advisors when finalising the transaction