Private Debt and LBO
Private Debt and LBO often go hand in hand in the complex world of Mergers and Acquisitions, and they’re taken care of by some highly experienced finance professionals. LBO refers to a leveraged buyout, a transaction in which a company is bought with a mix of debt and equity. The company’s income can act as a guarantee to repay the money that’s been borrowed to complete the acquisition.
Simply put, it’s when a company buys another company through financing. This method of buyout (funded by debt) is a fairly common occurrence in Mergers and Acquisitions, but it’s not without its risks. It’s a move often made by business owners at the end of their careers, who want to move on from the company with a reliable exit strategy, but there are plenty of other reasons it might be utilised.
LBOs can be used to cash out on underperforming business, or to transform a publicly traded company into a private one (by transferring the public shares to a private investor). If the debt is unable to be serviced, the LBO will ultimately result in bankruptcy. Since the interest rates can be so high on acquired debt, thorough risk analysis is essential. The LBO takeover process can be long and intricate, requiring the skills of many experienced individuals throughout the buyout. Careful risk management can ensure that the buyout maximises rewards for everyone involved (although the buyer naturally has a clear advantage). If you’re considering undergoing an LBO, you’ll need to make sure you’ve got the right people on board.
From Asset Finance jobs to private equity manager roles and risk analysts, a successful LBO needs to pass through many hands if it’s to be successful. At Broadgate, we’ve been delivering finance recruitment solutions to business all over the world, and we’ve got a passion for placing talented people in environments that enable them to thrive.
Using a community-led, diversity-focussed hiring methodology, we can pinpoint talent from an incredibly wide candidate pool, and our specialised consultants have the deep industry knowledge required to match the right person to the right role. Whether you’re hiring executives or junior-level financial talent, we can take care of your recruitment, saving you a huge amount of time and money in the process.
Business moves fast, so your hiring process needs to do the same. If you have any questions about Broadgate, be it our people, our network, our community partners, or Equiris Consulting, our DEIB-led business consultancy, please get in touch today, we’re here to help.