Facilitating a management buyout may be an attractive alternative to a sale of the business to a third party for a number of reasons, including:

• A higher level of confidentiality is maintained by avoiding a broad auction to competitors;
• Transaction anxiety and business disruption are minimized as employees, customers and suppliers are already comfortable with the “new” owners and their plans;
• Due diligence is much smoother with a knowledgeable management team and transaction representations and warranties of the vendor are typically reduced; and
• Creative structures can be incorporated which may include long term operational agreements, future payments beyond the initial purchase price, etc.

Solaris approaches these transactions in a “turn-key” fashion:  our services encompass familiarizing the management team with the process, evaluating management’s ability and willingness to proceed, negotiating the purchase and sale, establishing an appropriate capital structure and raising all of the required financing on the best possible terms.  Often these mandates incorporate specific reporting milestones to ensure that the seller is confident the transaction is proceeding expeditiously.