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