Management buyouts allow the management team to buy the business, while creating ownership incentives for new shareholders.
Are you and your management team seeking to take control of your company? Do you need a partner to provide financing for the transaction and strategic guidance going forward? Is your corporate parent planning to sell your division or subsidiary? If any of these situations apply to you, then Summit Partners could be a good partner to finance your management buyout.
In buyouts, Summit works with management to purchase a majority of the business while creating ownership incentives for new shareholders. Management buyouts can be useful in transferring ownership from retiring or inactive founders, a corporate parent or other significant shareholders to the current management team and Summit Partners. Transactions are structured with a prudent amount of leverage to ensure that cash flow is available to fund future growth initiatives.
Here are some examples:
- Summit guided NetCom Systems Inc. in a management buyout that provided liquidity to its founder, set the groundwork for marketing initiatives, and allowed managers to share equity ownership.
- With financing from Summit, Lincare Holdings Inc. — a home medical care provider — was able to spin off from its corporate parent and evolve into a leading public company.
- The owner of Physicians Formula Holdings Inc. used Summit financing to sell a majority position in the company as a spin-off, creating wealth diversification and providing equity ownership to its new senior management team.
- Summit financing helped Splash Technology Holdings Inc. to evolve from an image-processing subsidiary owned by a corporation into a successful independent company.