Management Buyouts
MBO’s are a commonly used exit strategy for many business owners. However given the unique dynamics involved, the transition must be carefully managed. Veracap has developed the MBO Value Matrix™ to facilitate the MBO Process. Veracap’s approach to MBO’s begin with a careful assessment of the needs, interests and resources of owners and management. The process then encompasses:
- Establish Protocol
Work with Owners, Managers and Investors to establish clear rules in facilitating the buyout process - Valuation Assessment
Establish valuation parameters that are achievable and that satisfy the retiring shareholders - Deal Structuring and Financing
Identify appropriate sources of capital and establish the process for ownership transition - Documentation and Closing
Assit in finalizing the terms of the purchase agreement and related shareholder's agreement
