Buyout Business Partner | Business Owner Buyout

Partner Buyout Services:  How To Buyout Business Partner or Execute an Owner Buyout

Many times in business, one owner wants to buyout a business owner,  or one business partner wants to move in a different direction from the other business partner.  This necessitates the need to buyout a business partner or execute an owner buyout.  An owner may be investigating alternative exit strategies, or is ready to sell their business interests to employees, family, or an outside company and an owner buyout is called for. 

Partner Buyout Services/Buyout Business Partner:  

Lantern Capital Advisors helps business owners, management teams, and minority shareholders confidentially explore executing leveraged and management buyouts, buyout business partners, or execute owner buyouts while allowing the purchaser to realize control of the business and create significant value.

Partner Buyout Services (Buyout Business Partner) and Lantern Capital Advisors

Lantern Capital Advisors works with management teams and owners to evaluate a company’s business and potential for individuals to buyout a business partner.  If it is believed that the future of the business provides a strong potential for success, Lantern Capital Advisors consults with executives and management to draft a letter of intent (proposal) to purchase the Company from the owner.

Often one of the biggest road blocks to successfully buyout a business partner is the owner’s belief whether management is a qualified buyer, or if the financing is achievable.  To gain the confidence of management and the owner, Lantern Capital Advisors works with the company to pre-qualify the owner buyout with multiple potential lenders/investors prior to submitting a final proposal to the owners so that both owner and buyer can feel confident a deal can get done.   Lantern Capital Advisors can also help management and owner identify an independent valuation firm to justify the purchase price both for the potential buyer and seller.

Once an owner accepts the letter of intent, Lantern Capital Advisors will work with management to draft a business plan and financing request to secure the needed capital.  Lantern Capital Advisors will arrange meetings with interested lenders and investors and will assist with the negotiations of all financing proposals.

The goal is to find financing that optimizes management’s ownership potential and long term objectives, and maximizes the sellers liquidity.

Once the financing is in place, Lantern Capital Advisors works with the owners and management to monitor due diligence and close on the purchase transaction.  Lantern Capital Advisors can also coordinate with legal and accounting professionals to optimize the structure of the new company and purchase. This includes an analysis of a full or partial ESOP structure for the transaction.

Lantern Capital Advisors Partner Buyout Services:  How To Execute Management Buyouts 

Management Buyout Financing (MBO Financing)

Owner Buyout Services: Working With Lantern Capital Advisors To Execute Your Owner Buyout or Buyout Business Partner

Unlike most investment bankers and advisors that raise capital to assist clients with owner buyout financing, Lantern’s compensation is not based on the amount of financing raised or the overall purchase price of the Company.  While fees under the Lehman Formula or Double Lehman Formula are lucrative, Lantern Capital Advisors believes this compensation structure presents a conflict of interest for our firm and works against the best interests of the management team, and the owner of the company.  Like all of our projects, Lantern Capital Advisors charges an hourly fee for our consulting time and our success rate for delivering financing alternatives surpasses those of investment bankers and brokers.

Sample Calculation of Lehman Formula vs. Lantern Capital Advisors Consulting Model.

Investment Banking Fees Vs. Consulting Fees:  Learn About How We Raise Capital For High Growth Companies

As consultants, Lantern Capital Advisors has a defined process to raise capital.  Learn about our three phased approach to raise capital to finance management buyouts.

WE ARE NOT A BROKER.  WE ARE NOT AN INVESTMENT BANKING FIRMLantern Capital Advisors is a corporate financial consulting firm that specializes in corporate financial planning and executing management buyouts, specifically geared towards raising capital for established growing companies.  

Lantern Capital Advisors does not accept referral fees, broker fees, or equity as any compensation from any client or institution.

Our Services Offerings Include:

Management Buyout Strategy

Management Buyout Strategy

Many times in business, one owner wants to buyout another owner,  or one business partner wants to move in a different direction from the other business partner.  Lantern Capital Advisors works with management teams to achieve management buyout financing.

Learn About Management Buyout Strategy and Management Buyout Financing

What our clients are saying...


“I spent years doing research and speaking to advisors, investors, and banks.  I cold find no support for the find of management buyout transaction I wanted to do and believed could be done.  That is, until I stumbled upon Lantern Capital Advisors.  Just one phone call to Lantern and I heard the words, "it absolutely can be done!"  Lantern then helped me make it happen.  I will be forever grateful to Lantern Capital Advisors for their counsel, expertise, and hard work in leading us to our goal.”

— DF, CFOFull Service Call Center


“I spoke with multiple financial firms about the possibility of conducting a management buyout of a particular division.  Most of them seemed more interested in developing a long term relationship with the parent company than they were in securing the best possible deal for me.  I was then referred to Lantern Capital Advisors and things just clicked.  They listened carefully to my vision for the business and patiently explained every step of the management buyout process.  They met every expedited timeline and used their extensive network to find me the best possible investment group.  I don't know that a deal would have been completed without their guidance.  I would recommend Lantern Capital Advisors to anyone contemplating a similar transaction.”

— JR, CEOConsumer Products Company

Owner Buyout

$ 7 Million Financing Management Buyout
  • Capital Invested $200,000
  • Ownership Granted Through Buyout 25%
  • Projected Ownership Outcome 55%
  • Use of Proceeds Management Buyout
  • Business Type Company Division Management Buyout

Tech Distributor

$ 45 Million Financing Management Buyout
  • US Region Southeast
  • Revenues $130 Million
  • Financing $45 Million
  • Use of Proceeds Management Buyout
  • Business Type Technology Distributor

Distributor

$ 65 Million Financing Management Buyout
  • US Region Southeast
  • Revenues $137 Million
  • Financing $65 Million
  • Use of Proceeds Management Buyout
  • Business Type Distributor

Consumer Services

$ 2 Million Financing Management Buyout
  • US Region Southeast
  • Revenues $7 Million
  • Financing $2 Million
  • Use of Proceeds Management Buyout
  • Business Type Consumer Services

Services

$ 19 Million Financing Management Buyout
  • US Region South
  • Revenues $25 Million
  • Financing $19 Million
  • Use of Proceeds Management Buyout
  • Business Type Services

Consulting

$ 5 Million Financing Management Buyout
  • US Region Midwest
  • Revenues $11 Million
  • Financing $5 Million
  • Use of Proceeds Management Buyout
  • Business Type Consulting

Lantern Capital Advisors

 Management Buyout Consulting Services

Our methodology is very efficient, effective and proven.  We can very quickly package a company for the market, confidentially solicit institutional interest, and negotiate proposals – clients can expect term sheets as soon as three to five weeks after engaging Lantern to manage the management buyout financing process, and achieve financing in as little time as eight weeks.

We pride ourselves on being FAST, TRUSTED, and COST EFFECTIVE.

Lantern helps companies CONFIDENTIALLY explore management buyout financing alternatives in order to buyout shareholders, afford an owner an exit strategy, or execute a leveraged buyout.

Lantern Capital Advisors believes that a company’s best interest is to look for and secure multiple management buyout financing options (MBO Financing) in order to achieve the best financing terms.

Lantern Capital Advisors prides itself on being FAST, TRUSTED, and COST EFFECTIVE.

We invite you to contact Lantern Capital Advisors to help your company CONFIDENTIALLY explore your Management Buyout/MBO Financing.