Most owners think selling means an outside buyer or a competitor. There’s a third option: selling to the team that built the business, tax free, through an Employee Ownership Trust. The catch? Management teams rarely have the capital.
DBLS built the structure: a Tier 1 lender experienced with MBOs, a Vendor Note alongside new bank debt, and an acquisition loan plus operating line to protect cash flow through the transition.
Results
- 80% LTV facility
- Acquisition loan at Prime + 1.00%
- Operating line at Prime + 0.50%, rates usually reserved for large corporations
- Management now owns 51% of the business they helped build
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