For many owners exploring an exit strategy, the ideal buyer isn’t a competitor or private equity firm—it’s their own leadership team. A management buyout (MBO) allows key employees to acquire the business, keeping operations, culture, and vision intact while providing the owner with liquidity and a smooth transition.
Olympic M&A’s Growth Capital Services support business owners through every step of the MBO process—helping structure the deal, secure financing, and ensure a successful transfer of ownership.
What Is a Management Buyout?
A management buyout is a transaction in which current leadership—such as the CEO, COO, or clinical director—purchases all or part of the company. MBOs are common in service-based industries like behavioral health, medical aesthetics, and professional practices where continuity is critical.
Key benefits of an MBO include:
- Preserving company culture and client relationships
- Rewarding long-term leadership and aligning incentives
- Avoiding public sales processes or strategic acquirers
- Allowing for phased or partial exits
Capital Strategies for Financing an MBO
Most leadership teams don’t have the personal capital to purchase the business outright. A successful capital raise typically involves a combination of debt, equity, and seller participation.
Here are the most common structures:
Cash Flow Lending
Lenders provide senior debt based on the company’s EBITDA and historical performance. This is often the foundation of the financing stack and ideal for companies with recurring revenue and strong margins.
Mezzanine Financing
A flexible layer of subordinated debt that bridges the gap between senior debt and equity. Often includes higher interest rates and may offer equity participation.
Seller Financing
A seller note is a powerful tool to bridge the gap between purchase price and available financing. It reduces upfront burden on the management team and demonstrates seller confidence in the transition.
Private Credit or Minority Investors
Family offices, private credit funds, or minority equity partners may contribute capital while allowing management to retain operational control.
How Olympic M&A Adds Value
As your M&A advisor, we don’t just introduce capital—we help design a path that protects your interests and positions your business for long-term success.
We provide:
- Accurate business valuation and deal modeling
- Structuring guidance for capital raises and seller notes
- Access to a vetted network of private credit and mezzanine lenders
- Full coordination from letter of intent through funding and close
Our approach is built for owners who want more than a transaction—they want a legacy carried forward by the people they trust.
Is a Management Buyout Right for You?
You may want to explore a management buyout if:
- You’re not ready for a third-party sale
- Your team has the vision and capability to take the reins
- You value continuity, control, and internal succession
- You’re open to a phased exit while unlocking liquidity
With the right structure and financing, an MBO can be one of the most rewarding paths forward—for you and your team.
Plan with Clarity. Transition with Confidence.
Whether you’re preparing to sell your business or fund a leadership transition, Olympic M&A provides strategic support through every phase. From capital strategy to exit planning, we help you unlock the value you’ve built and preserve what matters most.
Let’s explore whether an MBO is the right solution—and how to finance it the right way.
Tony Siebel
Managing Director
📞 502.360.8320 ✉️ tonys@olympicma.com
🌐www.olympicma.com
