Management Buyout

The client

Four management employees who filled all of the key roles for a long-standing site selection business with its own proprietary software.

The issue

The owner of the business was in his 70’s and the business was in danger of stagnating unless marketing and operational changes were made. The owner was reluctant to sell.

The solution

The Summit Group took a lead role and was instrumental in convincing the owner that it would be in his best financial interest to sell to the management group. Once we were able to move the owner to “yes”, we assisted the management team to prepare and negotiate the offer to purchase the business.

The Summit Group, through their numerous financial connections, was able to introduce the management team to several senior and subordinated debt lenders. We prepared a comprehensive financial model of the business that supported the financial “ask” and coached the management team on how to make effective banking presentations. As a result, the management team received multiple financial offers from the lending institutions and was able to close the transaction on a timely basis.

We were also able to introduce the management team to appropriate legal counsel and assist in the shareholders agreements and other necessary management agreements.