Leveraged Buyouts (LBO)

Unleash Your Growth Potential

At Keene Advisors, we provide clear guidance and approachable expertise to navigate the world of leveraged buyouts (LBO). The word “leverage” may not be in the daily lexicon of anyone outside the world of finance, but it’s not as complicated as it may seem. Leverage is another word for debt. And debt is a financing tool that can be used to fund acquisitions. A leveraged buyout is simply when a buyer uses debt financing to acquire another company.

A Leveraged Buyout Can Amplify Growth Opportunities

Companies with strong cash flow and and stable earnings make exceptional leveraged buyout targets. Private equity firms and other institutional investors that fund leveraged buyouts are targeting strong returns and utilize proven growth strategies as well as financial engineering to generate strong risk-adjusted returns on their investments.

Precise Execution is Key

However, it takes experience to navigate the complex financial framework that makes it possible to execute a leveraged buyout without taking on unnecessary risk. We anticipate challenges ahead of time, allowing you to focus on growing your business, not dealing with operational complexities that may put your company at risk. We’ll help negotiate terms with banking or investment partners, navigate covenants, enshrine reporting responsibilities, and communicate transparently so you have an understanding of the process at each step along the way.

After all, great financing is only one of several tools in the toolkit that helps build a great company. And if executed with the right balance of risk and reward, it should be the piece that allows you to soar, not the one that keeps you up at night.