Management Buy-outs

In situations where a management team wishes to consider buying the company, CCC has significant experience acting on behalf of management. A management buy-out is a major undertaking with a demanding process. That's where the value of an experienced and independent advisor like CCC lies.

CCC's role in a management buy-out is very similar to the role we play in any acquisition but there are additional duties. Specifically, we advise management of their responsibilities with respect to the process. This is especially important when management finds itself pulled in different and sometimes conflicting directions; directions that may not always be consistent with their fiduciary responsibility to run the business responsibly. We help management to balance opportunity and responsibility during those times. We also manage the process so that management can continue to focus on running the business.

Our role in a management buy-out includes assisting the management team to:

• Determine their objectives and criteria for the transaction
• Assess the full financial impact of the transaction to determine whether management can achieve the return that it requires
• Recommend the most appropriate capital structure
• Raise the necessary capital through our subsidiary, The Commercial Capital Securities Inc., a registered Exempt Market Dealer
• Ensure that documentation relating to financing is aligned with the purchase and sale documents to ensure consistency of covenants, reps and warranties, etc.
• Manage the closing process, including coordinating efforts with the lawyers, accountants and bankers