An MBO or MBI occurs when the current management of a company (MBO) or an external management team (MBI) feels that its competency in the business is affluent enough to start creating value for themselves rather than for the current shareholders. The management purchases parts of that company with its own financial capacity or with the help of financial investors (LBO).
A buy out or buy in is a unique opportunity that presents many complex and time consuming issues. Independent of the management’s motivation, strategic planning and solid financial advice is pivotal to manage associated risks properly.
Eventus Corporate Finance is a pioneer in Latvia with respect to MBO deals. We have managed almost all of the few buy outs in Latvia aiding management teams to enjoy substantial private wealth and in the meantime satisfy the requirements of the existing shareholders. Our main value added is deal structuring in a way that thoroughly considers sensitive details and eventually negotiates the best ownership terms for the management.
We utilize our deep-rooted relationships with leading private equity investors, mezzanine capital providers and banks to facilitate identification of the most appropriate combination of financial partner for our customer.
Given an exclusive consultant status, the transaction would normally proceed as follows:
- Negotiation management
- Business planning and financial modeling
- Company valuation and deal structuring
- Selection and negotiations with equity advisors
- Company due diligence
- Obtaining bank financing and other equity investment
- Preparation of legal and other documentation
- Closing of the transaction