Management Buy-Outs

Management buy-outs can result in positive outcomes for both existing owners and management. This strategy enables:

• Owners to realise their wealth inherent in their business; and
• Management to participate in the ownership of the business.

Lawler Corporate Finance can assist both owners and management at all stages throughout the buy-out process including:

• Outlining the objective of the existing owners;
• Facilitation of meetings to discuss the goals of owners and management and their personal situations;
• Designing Management Incentive Schemes which will maximise the value of the company for both sides including the implementation of performance hurdles and timeframes;
• Managing the approach to the vendor (if unsolicited);
• Developing tax effective and equitable structure for both parties;
• Structuring a deal that will support the business going forward;
• Facilitating meetings between parties to establish a shareholders’ agreement;
• Sourcing bank or private equity funding; and
• Negotiating with the bank or private equity fund to finance the purchase.

We recognise that the management teams are usually unfamiliar with the process of the transaction, and as such we provide professional services and support throughout the process. This enables the management team to remain focused on the running of the business rather than the transaction.

As the stages of a Management Buy-Out require considerable commitment and dedication of time and resources, it is preferable to enlist a team with experience in these transactions, rather than removing the focus of the management team from the business activities and thereby impacting profitability.

If you wish to talk more about Management Buy-Outs,  or for more information on how Lawler Corporate Finance can assist, contact Allan Farrar in Sydney on (+61) 2 9008 1404 or Email Allan or Simon Rutherford in Newcastle (+61) 2 49 622 688 or Email Simon.