LBO/LMBO

 

• Amilton can help you address key issues to successfully execute a LBO/MBO

 

• Financial sponsors can provide value in various ways

 

• Going private criteria

 

A leveraged buyout (« LBO ») is the acquisition of a business by a financial investor (financial sponsor) whose objective is to exit the investment after three to five years realizing IRR in excess of 20-25%

In an LBO, the acquisition is financed in part by raising a variety of highly structured equity and debt instruments. Equity typically accounts for c.25-35% of funding for a transaction, but can go up to 100% if credit is not available to the financial sponsor.

Assumptions regarding the business performance, the exit strategy and the period between the acquisition and the exit are critical to determining an appropriate capital structure and potential returns on equity.

Amilton has the skills to successfully execute a LBO or an MBO:

 

• Expertise in mergers and acquisitions

 

• Strong relationships with potential sources of financing

 

• In depth understanding of small- and mid-size business operations

 

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Amilton can help you address key issues to successfully execute a LBO/MBO

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Financial sponsors can provide value in various ways

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Going private criteria:

 

• Strong, motivated management team

 

• Strong business fundamentals and opportunity to create long-tem value

 

• Attractive entry point

 

• Transformational opportunity

 

• Multiple arbitrage opportunity

 

• Visible exit opportunity in 3-5 years time horizon

 

• Governance and representation commensurate with level of investment

 

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