Management Buyouts

Sometimes the most qualified buyer is the current management. SFA Consultores provides advice to conduct a buyout by assisting in the valuation, structuring, negotiation and financing for the transaction. This often applies particularly to family firms where the founding partner is unable to find a relative interested in continuing the business.

 

The peculiar nature of this transaction is defined by the management’s role as a buyer and the consequences derived from this. Typically the management does not have the necessary funds to buy the entire business, which is why frequently financing is required. A second option is partnership with a source of private equity due to the complexity of a process that usually requires large sums of capital.