Management Buyouts & Leveraged Acquisitions

White Cap acts as an advisor to senior management teams seeking to acquire businesses on a leveraged basis. This includes:

• Management Buyouts - we facilitate the acquisition of public and private companies in partnership with incumbent management teams. Existing shareholders are given liquidity while managers receive generous equity stakes in the recapitalized company.
• Management Buy-ins - the firm arranges for outside management to acquire companies where the retiring or resigning key executives leave the business without succession plans. Qualified executives and managers negotiate a mutually agreeable set of criteria with institutional investors, including the recruitment and selection of outside management.
• Recapitalizations - the firm provides liquidity for principals and managers without sacrificing operating control of the company. By recapitalizing, shareholders receive cash liquidity while retaining equity and the ability to participate in the rewards of future growth.
• Family Succession - the firm facilitates the transfer of ownership from one generation to the next, fulfilling liquidity and estate planning objectives while preserving the identity of the family business. This scenario is particularly attractive if a younger generation will ultimately obtain the cash proceeds bequeathed by an estate.
• Industry consolidation - the firm works with management teams to identify other companies in a related industry. Support is given to managers seeking to make select strategic acquisitions or to integrate companies within a fragmented industry.

Whatever the required transaction structure - our experience, creativity, and flexibility enable us to recognize potential opportunities for value creation. Key elements of successful transactions include: identifying high quality management teams within attractive industries, negotiating acquisitions with sellers preferably on a non-auction basis, negotiating the employment arrangements and ownership participations with key managers, providing and arranging the financing required to complete the acquisition, and following closing, serving on the Board of Directors of the newly-formed companies and providing assistance to management with respect to capital market activities.