The role of the venture capitalist
Private equity involvement
The development and rationale for different types of buy-outs
- MBOs
- MBIs (Management Buy-Ins)
- BIMBOs (Buy-In Management Buy-Outs)
- JUMBOs (Joint Venture Management Buy-Outs)
- VIMBOs (Vendor Initiated Management Buy-Outs)
- IBOs (Institutional Buy-Outs)
Key features of a successful MBO
- Management, business
- Market momentum
- Capex requirements
- Lack of cyclicality
- Cash flow
Structure of an MBO
- Senior debt: features, alternatives and the use of securitisation
- Mezzanine finance: features, equity warrants and high yield bond alternatives
- Increasing use of PIK alternatives
- Institutional equity: latest trends, problems and how they are overcome
- Methods of participation for the vendor and their rationale
- Management equity, ratchets and structuring the ratchet mechanism: linking
  the IRR with the rewards for management
Initiating the MBO: problems for management and vendors
The equity investment and loan arrangements: contents of key legal agreements in buy-outs
Financial assistance and how to overcome the problem if the target is private (“whitewash” procedures)
Exit routes
- Trade sales
- IPO
- Second/third round buy-outs
- Leveraged recapitalisation

Agenda