Management Buyout | MBO Financing


Management Buyout Financing

Management Buyout Financing

How Lantern Capital Advisors Executes Leveraged Buyouts and Management Buyouts

How To Execute Management Buyouts

Private equity firms like the Carlyle Group, Kohlberg Kravis Roberts and many others have made huge returns for investors through buyouts.  Using financial engineering and a lot of debt these firms buy companies with little money down.  While these types of transactions create spectacular returns for investors, they often shortchange the seller and management teams that drive the business.  Thankfully, owners and managers can use these same financial tactics to buy and sell their business and have the benefit accrue to them.

How Most Management Buyouts are Done 

Private equity firms do hundreds of buyouts a year. Their typical approach is to offer to buy a controlling stake in a company using leverage they obtained from banks based on the financials of that company.  Often times these firms commit very little of their own money to purchase the business.   With little cash invested, these deals create spectacular returns for the buyout firm.

Buyout firms also collect large fees up front, as well as additional advisory fees while operating a company they’ve acquired, and a big share of the investment profits. The average annual management fee to do business with a private equity firm is about 1.5% to 2.5%. The average share of profits is about 20%.  While buyout firms give management ownership, it’s usually less than 20% of the company.  This type of buyout is the most common and is typically called a   Sponsored Leveraged Buyout, where the equity player is the “Sponsor.”

Management Buyout Financing


Management Buyout Consulting Services

Non-Sponsored Management Buyouts

For financially healthy businesses, there is another approach that utilizes the same financing techniques but management gains operating control.  In fact, management can end up owning 85% to 100% of the Company depending on the situation. These types of buyouts are called Non-Sponsored Buyouts.


Learn About Non-Sponsored Management Buyouts


Management Buyout Topics From Our White Paper Library


Learn More About Management Buyout and MBO Financing By Visiting our White Paper Library

Management Buyout/MBO Financing White Papers


Management Buyout MBO Financing

Selling Your Company To Management: How Selling Your Company To Management Can Be An Alternative Exit Strategy

Download “Selling Your Company To Management:  How Selling Your Company To Management Can Be An Alternative Exit Strategy” from our White Paper Library

Abstract:  Selling Your Company: How Selling Your Company To Management Can be a Smart Exit Strategy.  Business owners often overlook selling their company to management as a possible exit strategy. But for solid companies with good cash flows, selling your company to management may yield a higher financial value for the owner and a much brighter future for the business, management, and the seller. This white paper discusses the benefits of the strategy of selling to management, and illustrates it with an example of a company that successfully completed a leveraged management buyout after proactively pursuing other alternatives.

Selling Your Company: How Selling Your Company To Management Can Be a Smart Exit Strategy


Management Buyout: 5 Strategies For Maximizing Ownership

Management Buyout: 5 Strategies For Maximizing Ownership

Download “Management Buyout:  5 Strategies For Maximizing Ownership” from our White Paper Library

Abstract:  Accomplishing a buyout where management owns a significant portion of the equity requires some out of the box thinking that can go against the conventional wisdom for financing management buyouts.  This short white paper suggests five important strategies for both completing a buyout and maximizing management ownership.

Management Buyout: 5 Strategies For Maximizing Ownership


Creative Management Buyout Strategies

Creative Management Buyout Strategies

Download “Creative Management Buyout Strategies” from our White Paper Library

Abstract:  Private equity firms particularly those that focus on buying smaller companies (less than $100 million in value), will often structure the financing of a buyout utilizing limited amounts of their own equity and aggressive debt structures. While such an approach can create spectacular returns for their investors, management and the sellers can often end up feeling shortchanged. Thankfully, owners and managers can use their own creative buyout strategies to create substantially more value for both buyer (management) and seller (owner).

Creative Management Buyout Strategies White Paper


Management Buyout Consulting Services

Buyout A Business Partner: Learn How To Buyout A Business Partner

Many times in business, one owner wants to buyout another owner,  or one business partner wants to move in a different direction from the other business partner.  Lantern Capital Advisors works with management teams to achieve management buyout financing.


Learn How We Help Clients Buyout a Business Partner Or Owner


Corporate Financial Planning, Refinance Company Debt, Acquisition Financing, Management Buyout, Leveraged Buyout, Raise Capital, Corporate Finance

WE ARE NOT A BROKERWE ARE NOT AN INVESTMENT BANKING FIRM. We are a corporate financial consulting firm that specializes in corporate financial consulting and executing management buyouts, specifically geared towards raising capital for established growing companies.  We don’t accept referral fees, broker fees, or equity as any compensation from any client or institution.

Our Services Offerings Include:

Our methodology is very efficient, effective and proven.  We can very quickly package a company for the market, confidentially solicit institutional interest, and negotiate proposals – clients can expect term sheets as soon as three to five weeks after engaging Lantern to manage the management buyout financing process, and achieve financing in as little time as eight weeks.

We pride ourselves on being FAST, TRUSTED, and COST EFFECTIVE.

Lantern helps companies CONFIDENTIALLY explore management buyout financing alternatives in order to buyout shareholders, afford an owner an exit strategy, or execute a leveraged buyout.

Lantern Capital Advisors believes that a company’s best interest is to look for and secure multiple management buyout financing options (MBO Financing) in order to achieve the best financing terms.

Contact Lantern To Assist You On Your Management Buyout/MBO Financing

Lantern Capital Advisors prides itself on being FAST, TRUSTED, and COST EFFECTIVE.

We invite you to contact Lantern Capital Advisors to help your company CONFIDENTIALLY explore your Management Buyout/MBO Financing.


Contact Lantern To Assist You On Your Management Buyout/MBO Financing