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Overview
What is a Management Buyout?
A management buyout (MBO) process is a type of acquisition that enables a company’s management team to acquire a significant stake in, or the entirety of, the company from the parent or private owners.
PGIM’s Approach to Management Buyouts
PGIM takes a collaborative, long-term approach to management buyouts, helping management teams transition from operators to owners while providing business owners with a flexible liquidity and succession solution. Through tailored financing structures and a relationship-driven approach, we support ownership transitions designed to preserve business continuity and position companies for future growth.
Greg Moore, President and CEO of MooreCo, sought a financial partner to support the management buyout plan of his company from Webster Capital as well as a recapitalization.
Who We Work With
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Understanding Management Buyouts
Typical financing sizes include:
- Senior debt: $10 million to $300+ million
- Subordinated debt: $10 million to $100+ million
- Preferred equity: $10 million to $50+ million
Companies will generally pursue a management buyout to provide equity ownership to a management team, take a company private, cash out a family member, or establish an Employee Stock Ownership Plan (ESOP).
Collapse SectionFinancing can be structured as fixed- or floating-rate, secured or unsecured, with maturities ranging from 3 to 30+ years and either amortizing or bullet repayment profiles. We can provide senior debt alongside subordinated debt and equity, delivering an integrated solution through a single, relationship-oriented capital provider.
Collapse SectionCompanies value our relationship-oriented approach, ability to provide follow-on capital as growth needs evolve, understanding of complex business requirements, and capacity to fund across the capital structure through senior debt, subordinated debt, and preferred equity.
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