U.S. Management Buyout
Acquisition Advisors
We help proven management teams buy their employer.
If you manage a U.S. company and wish to buy it, and the owner is willing to entertain selling to you, we can help make it happen. We provide advice and assistance, share with you best practices, help you negotiate a good deal, and arrange and secure the debt and equity capital.
Buying a company is complex. Negotiating with your employer can be next to impossible. Getting your boss to take you seriously can be a challenge.
We've seen it many times. Maybe you have limited experience with business purchases, business valuation, transaction structure and finance, so you are unsure what to do first, second and third. Your deal moves along at a snail's pace devoid of logical progression and it becomes uncomfortable for both parties. Your employer already has doubts whether you can get it done. The lack of progress makes things even worse.
Well, time kills deals. Nothing good gets done by hoping. Is the uncertainty driving you mad?
The professionals at Acquisition Advisors have experience in these matters. Send us a note and we'll see what we can do to help. Confidentially.
Acquisition Advisors was formed in 1997 and consults on the purchase, sale and valuation of mid-size U.S. Companies. Most of our work is with profitable companies earning between $1 and $10 million per year. We help proven managers and management teams buy their employer. Or, find another business to buy and run.
Mr. Perkins is an expert on the purchase, sale and valuation of small and mid-size U. S. companies. He has extensive education, training and experience on the subjects; has consulted on hundreds of transactions across almost every industry; and is an experienced and successful business owner and investor for his own account. Perkins holds a Bachelor of Arts degree in psychology from the University of Oklahoma, a Master of Business Administration (MBA) degree (accounting concentration) from the University of Notre Dame, and an Executive Education Certificate in Mergers and Acquisitions (M&A) from The Wharton School of Business. He is a passionate advocate for business owners and entrepreneurs, an exceptional negotiator, author, public speaker, airplane pilot, and proud father of three daughters.
The term "management buyout" (MBO) refers to a transaction in which the non-owner managers of a business "buy out" their employer, or purchase ownership, i.e. equity, of or in their employer. If you run a company and wish to "buy out" your employer or are a part of a management team that wishes to buy its employer, we can help. Similarly, if you are the owner of a business and want to find a way to sell your business to your manager, managers, or a group of your employees -- good for you. We think this is exciting and we'd love to help. A deal like this is complex. We can simplify it, eliminate wasted time and money, and help get it done in a timely manner.
I WANT TO BUY OUT MY EMPLOYER BUT DON'T HAVE THE CAPITAL.
Yes, it's hard to buy a business without any equity capital, aka cash, but "where will the equity capital come from" is just one of many questions that must be dealt with simultaneously. First, what is the business worth? From the buyer's standpoint, what is a reasonable price to pay? Or what is the maximum price one can pay and still reasonably expect to receive a fair rate of return given the buyer's required rate of return and the riskiness of the investment? Second, will the seller sell for the price described above? And, if so, on what terms? How much financing will the seller provide? Maybe you don't need much equity. Maybe not any. Third, how much debt can be borrowed to finance the transaction? The equity required is a function of the sale/purchase price less the debt finance. How much equity capital is required? If you don't have these things figured out yet, it's time to get busy. If you need help, contact Acquisition Advisors. If you do know the answers to these questions and you just need help raising the equity -- call Acquisition Advisors!
I HAVE A BUSINESS I THINK I WANT TO BUY. CAN YOU HELP?
Of course. We know it’s a bit daunting if you have never done it before, but we simplify it for you. Buyers waste a lot of time and money running inappropriate or inefficient processes, so we end up paying for ourselves through the cost-saving we bring to your deal.
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If you are just learning about acquisitions and want to learn more, buy and read A Concise Overview of Business Valuation. You'll be glad you did.
I HAVE A TRANSACTION I NEED HELP WITH. HOW DO YOU CHARGE?
Depends. (You knew we'd say that didn't you?) Seriously though, the easiest way to help you is hourly. We charge you like an attorney, but we, unlike attorneys, are deal makers rather than deal killers. We sign an engagement letter, you pay us a retainer, and we bill you.
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If you and your employer/business seller wish to jointly hire us to assist you both, then you two decide who pays our fees. If we raise or bring the equity necessary to get the deal done, we'll get an additional payment from the equity providers when the deal closes.
WHAT SIZE DEALS DO YOU WORK ON?
The professionals at Acquisition Advisors have experience with all sizes of transactions. By way of example, David Perkins, Founder and Managing Director, has consulted on and closed transactions valued under $100,000 and over $100,000,000. Now, the firm's "sweet spot" and core focus is working with businesses with at least $1 million in annual EBITDA. This is simply because the firm can make more money by focusing on larger deals. But a deal is a deal, and when it's yours, size does not matter as it is important to you. Maybe the most important opportunity of your life. You need to make the most of the opportunity and can't afford to let it pass by or screw it up. We understand and are here to help.