Buy-outs are challenging as there is an inherent risk of conflict of interest for the management team
Understandably, management wants to acquire a business on the most favourable terms. However, their fiduciary and employment duties mean they also need to act in the best interests of the business and its current owners. Poorly handled, this can cause conflict and on occasions see the team leaving their jobs. By contrast, clear and open communication will enhance relationships and greatly increase the chances of success.
The buy-out process is complex and can detract from the day-to-day running of the business. Our capital markets experience helps us to structure deals to meet individual business objectives. Our role includes:
- Helping management teams to produce an ambitious yet achievable business plan
- Challenging the team’s growth plans and building a robust financial model to support the associated financial projections
- Identifying the value in the deal and helping to articulate why different funders should invest
- Approaching credible investors with successful track records and capital to invest
- Structuring an appropriate financial deal with sufficient built in flexibility
- Negotiating with the vendor thus removing the strain management often feel when dealing with their current employer
- Ultimately, delivering a deal that meets all parties’ objectives
Why choose Quercus?
- Extensive experience. All our projects are led and executed by experienced partners who take hands-on approach to managing transactions and client relationships
- Senior commitment. We bring to bear over 160 years combined corporate finance experience and a track record of 350 completed deals
- Relationship focus. We establish long-term strategic relationships with our clients and the business community based on openness, honesty and integrity
- International reach. We have established a ‘best of breed’ international network, the cornerstone of which is the Terra Alliance