Lantern Capital Advisors serves as a management buyout and corporate financial consulting firm to profitable, private companies. As a management buyout consultant, Lantern Capital Advisors helps companies develop business plans and raise capital to secure management buyout or non-sponsored management buyout financing for management buyouts (MBO), leveraged buyouts (LBO), or partner buyouts. In that role, Lantern Capital Advisors helps companies access the capital to finance their management buyout (MBO) or leveraged buyout on primarily an all debt basis. This enables management to gain operating and financial control of the company either upon completion of the management buyout or over time as the management buyout financing is repaid.
Lantern Capital Advisors alternative approach to secure management buyout financing is unusual because most leveraged buyouts or management buyouts are financed by a private equity firm or “‘financial sponsor”. In those management buyout transactions, the private equity firm typically ends up owning 80-90% of the company stock, even though most of the buyout financing is provided by third party debt providers. By financing the management buyout using debt, these private equity firms are able to invest little of their own capital and generate spectacular returns for their investors that dwarf the value realized by management or the selling owner had they accessed the capital themselves without using an investment banker or private equity firm.
Our management buyout consulting approach uses those same debt financing sources and techniques to fund the management buyout, but without the private equity or investment banking firm involved. As a result all the ownership of the company is shared between management and the selling owner. This can be attractive to a seller because the purchase price is often higher than a private equity firm will pay, while management gets the opportunity to own substantially more equity (often 80% or more). This type of management buyout transaction is financially and personally rewarding for the owners and managers because they have worked together for years to build the value in the company.
Management Buyout: Working With Lantern Capital Advisors
Lantern Capital Advisors uses a proprietary planning process to help companies quickly “Explore What If” then raise capital to make it happen. Our capital raising process delivers consistent result and offers clients a unique combination of experience, objectivity, and value.
- Experience – All we do is help growing companies explore, plan, and execute business and financial strategies to realize their potential. We know the financing sources well. We connect with them early in the process which allows us to consistently meet or exceed our clients’ expectations.
- Objectivity – Fees for most corporate finance advisors are determined by the strategies or products they recommend. Lantern Capital Advisors works on an hourly consulting basis to raise capital, so clients can always trust our advice and independence because we have no financial incentive to recommend one product, strategy, or financial firm over another.
- Value – Our proprietary planning process to raise capital is highly effective and delivers consistent results at a fraction of the cost of our competition.