As part of a senior management team, you are intimately familiar with your business and know how to take your company to the next level of success. At the same time, current ownership might not be motivated to commit the time, effort and capital needed to maximize growth. In this situation, a management buyout (MBO) may be the right option for everyone.
In an MBO, Long Point will back your team’s acquisition of your company, providing current ownership with liquidity and putting you in a position to lead the business as operational leaders and equity partners.
We will help you acquire the company using a combination of debt and equity capital. While Long Point will provide the majority of the equity, we will look to you and your team to make a meaningful investment in the business that is in line with your personal financial resources. In addition to your equity investment in the company, we will put in place a performance-based equity incentive plan that will further align our interests in growing the business and create a significant wealth creation opportunity for you and your team.
Following the closing of the transaction, our joint focus will be on driving profitable growth and creating value. Prior to the close we will work with your team to build a business plan that addresses short, intermediate and long term priorities. That way, when the deal closes we will have already reached agreement on how to move the company forward and can focus on executing the plan.
While we will work collaboratively to develop and pressure test the business plan, we are firm believers that the plan ultimately has to come from you and your team. You know the business better than we ever could and it’s your knowledge and effort that will make the company a success.