Turnaround financing can include Senior Debt, Subordinated Debt and Equity. There are very few sources of Turnaround financing. Someone sees value in the business beyond what is obvious from the current and recent performance and takes on the challenge of turning the business around. Management Buyouts Managers often team up with private equity investors to purchase businesses or subsidiaries, divisions or product lines of corporations, using a combination of debt and equity financing. This is one of the most powerful methods for enriching the entrepreneurial spirit of professional managers.
Management buyouts represent the opportunity of a lifetime.
After playing a critical role in building their company, managers often consider buying their company as the natural next step in the progression of the company's ownership. For most managers, a company buyout is the fulfillment of their dreams. However, successfully pursuing and implementing a management buyout is one of the most difficult jobs a manager will ever tackle. Managers are experts at running their companies, but most managers have little experience making an acquisition. Management buyouts generally occur in a short time frame and require substantial and multiple sources of capital as well as legal, accounting, environmental and other professional support.