BUYOUT ADVISORY SERVICES
Leveraged Buyouts, Management Buyouts and Reorganization
Leveraged Buyouts, also referred to as LBO, refer to the acquisition of a business using mostly debt and a small amount of equity. The debt is secured by the assets of the business. In an LBO, the acquiring company uses its own assets as collateral for the loan in hopes future cash flows will cover the loan payments.
Management Buyouts, also referred to as MBO, refer to a situation when the managers and/or executives of a company purchase a controlling interest in the business from existing shareholders. In most cases, the management will buy out all the outstanding shareholders because it feels it has the expertise to grow the business better if it controls the ownership. Quite often, management will team up with an investment bank such as Houlihan Smith & Company, as this is a complicated process that requires significant business financing.
Houlihan Smith & Company provides expert financial advisory services to clients considering a leveraged buyout, management buyout, or reorganization. Houlihan’s priority is to optimize transaction structure and coalesce around our clients’ strategic objectives and operational goals.
As a full-service investment bank, we also act as financial advisor to our clients in all facets of a mergers and acquisitions process including: business analysis, business opinions, business valuation, and business financing. Houlihan Smith & Company maintains communication with all sources of business financing including: debt financing, equity financing, alternate business financing, asset based lenders, commercial lenders, mezzanine lenders, angel financing, working capital financing, accounts receivable financing, and equipment financing, to name just a few options when looking for business loans.