Case Study : Management Buyout of Family-Owned Business
The second-generation owners of a well established regional Home Improvement retail chain sought to transition ownership to company management. No family members were involved in company management, while the well-regarded company management team had very limited financial resources.
- Kellogg worked with all stakeholders to evaluate their capabilities, needs and expectations.
- Based on his analysis of the company and market, an equitable purchase price was established and agreed to by all parties.
- Kellogg then developed a creative financing structure that allowed management to obtain ownership control, while minimizing seller taxes. At the same time, adequate financial strength was ensured at the operating company.
- Kellogg oversaw the entire process, from evaluating all parties’ needs, to structuring the transactions, and pushing all parties to a successful closure.
