Management Buyout

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Management Buyouts: A Framework for Value Realization
Management buyouts (‘MBO’s) have become increasingly popular in recent years due in large part to the abundance of available capital in the North American marketplace. They can be particularly attractive as an exit strategy for business owners looking to retire and for corporations seeking to divest of a non-core business segment. In addition to the many Canadian-based financial investors searching for good MBO candidates, a growing number of players from the United States and other parts of the world are looking to Canada due to the scarcity of good prospects and the quality of the companies and management teams that reside here. Financial investors will compete among themselves for
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The net cash flow generated by Company A each year will be used to make principal repayments on the outstanding debt. Consequently, the amount of debt outstanding at the end of year 3 will decline to $5,829,000. During that

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