De redactie
Redactie
Financieel Management

In order to be able to buy the company management needs the financial backing of investors and banks to provide equity and loan capital.

Investors look for strong and stable businesses with a strong management team. They invest in companies with a (potentially) leading and defendable market position and growth prospects. To make a return on their (and management´s) investment it is important that there is a suitable exit opportunity in the future. Investors aim to finance a large part of the consideration with debt and thus the business must be able to support an appropriate level of leverage.

Lenders have an appetite for stable businesses with strong, predictable, recession-proof, positive cash flows. Having a limited upside potential and a large downside exposure, banks tend to focus on risks and problem areas.

Most investors and lenders nowadays focus on larger deals. These financiers have an appetite for businesses with profits exceeding eur 3 million. With the abundance of capital available there seems to be no upper limit on deal size that can be financed.

« Terug naar Management Buy Out