The “Mini LBO” or small leveraged buyout, can be done at any level with any company even though it is used so thoroughly by large investors and private equity firms. It is essentially a suite of financial techniques which enable the potential buyer of a company to leverage a small amount of money and combine it with conventional financing and seller financing to acquire a substantial company.
Read MoreHere is something not everyone understands about Small Business Buyouts. There are really two major phases of the process which need to be dealt with separately.
Read MoreWhen someone talks to me about doing ten deals(and yes a subscriber mentioned it) – not just one but ten – it brings back fond memories. Indeed there was a time I wanted to do many more than ten deals becausof a couple of years starting with the IPO Gibson Greeting Cards and culminating in the billion dollar Pere I had just watched Wesray start from nothing (ok Simon had some money) and do a deal a month over the span mian Oil deal. KKR did a nice string of deals up until the RJR Nabisco Barbarians at the Gate deal, the largest of its day.
Read MoreToday, LBO’s have nearly come and gone. This is good for the small guy in many ways. For one thing financial institutions now have years of experience in financing LBO’s and do not mind financing these deals at all size levels. That doesn’t mean that anything goes
Read MoreThe LBO model can be applied to most any type of deal small or big. Why would we want to do this? How can the purchase of a main street store be compared to the purchase of a aircraft parts manufacturer? How can we use the same...
Read MoreThe rewards of doing an LBO are extraordinary. The prestige and financial power is intoxicating. Even the smallest of LBOs can generate huge income for a lifetime. If you follow internet marketing at all, you may be drawn to the...
Read MoreThe following are reasons why you won’t buy a business. I am not saying you won’t buy a business, but if you don’t these will be some of the reasons why and here are some of specific obstacles that will stop you.
Read MoreSize matters with LBO’s. The largest LBO market is comprised of target companies in excess of $1.0 Billion in sales. These are mostly public companies and as such command a different discipline than doing a deal on smaller private companies. This is a highly competitive market where deals are done by the largest of private equity groups or other large public companies.
Read MoreI was a product of the Leveraged (LBO) craze in the eighties and nineties. That’s right, the big ones. When they just started. I was a young banker helping to finance Wesray, the celebrated pioneer of buyouts spearheaded by William Simon, former Treasury Sectretary and Ray Chambers back in 1982.
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