Management Buyouts

Situation

Corporate owner elected to divest food products machinery business because of new strategic direction. Top management was given the opportunity to buy the business at a very fair price.

Problem

Top management does not have the personal capital and cannot raise the money through traditional sources to make the deal.

Solution

We found a financial buyer (buyout fund) that would be interested in the business and management. Financial buyer backed top management, bought the business, and gave management a 20% stock interest at no cost to them.

Benefits

Top management continues to run business, is now a part-owner and has a strong financial partner.

For additional information, contact Paul Johnson 626-799-5200 pnj@johnsonbutler.com