The purchase of a firm or a company division by an internal or external management team is a process which requires, in addition to the usual phases of a company acquisition, a number of factors that will condition whether or not it is feasible to buy it such as:
- The transaction’s viability: the viability of a leveraged buy-out without having the support from the parent company or acquiring group.
- Capturing equity by including financial partners that support the management team in the buy-out.
- Obtaining bank, institutional or other sources of financing by getting the company into debt.
- The operation’s structure.
- The project design and business plan to attract external funds for the management team and have guidelines and objectives that the business must meet to deal with the leveraged buy-out.
We actively work with venture capital firms, and some members of our team have been outstanding professionals in the venture capital sector and in investment companies.
For the buy-outs, we start by providing advice to the management team regarding the analysis of the business to be acquired, the business plan’s design and its assessment and the design of the transaction structure to be carried out with the inclusion of financial partners and indebtedness.
After defining the plan, we participate in its execution by selecting the private equity profiles that conform to the project, starting talks with them and defending the project, its plan and its key financial and business points. We also prepare and present the project to financial institutions with a view to its financing and we negotiate the company buy-out with its current owners.
In short, we provide an overall service, where we permanently accompany the management team throughout the process and in the three basic vectors of this type of operation: the buy-out and the obtainment of equity and debt.