If senior management has the opportunity to buy out or acquire the company or subsidiary they currently run, the existing owner or parent company may be willing to sell the business to the management team under certain circumstances, including:
- The transaction would be discreet and not involve disclosing confidential information to competitors that a wider sale of the business would entail
- Current management understands the values and culture of the company and the change in ownership is less likely to be disruptive to employees and customer relationships
- Closing in a shorter timeframe, as due diligence will be limited to the requirements of the finance providers
We recognize the sensitivity of transactions involving management buyouts. We work on behalf of management to assist you throughout the process, evaluate the business, negotiate the price and structure of the transaction, determine the appropriate capital structure and raise the required financing.
Given that management-led buyouts may require equity financing, our extensive relationships with private equity groups across North America enable us to find the best possible partner on the right terms for you.
Open our most recent Acquisitions and Management Buyout Deal Announcements (PDF, 215 KB) Opens a new window in your browser
At CIBC, we offer a wide range of loans and financing options to meet the needs of incoming owners. In addition to traditional bank financing and mezzanine debt, we can also suggest solutions around third party mezzanine debt and vendor take-back financing to help ensure you have the right financing package for your transaction
Your relationship manager will work with you and the incoming owner to structure the solution that’s best for you and the business.
Raising financing from third party capital providers and investors may be the right choice for your business if:
- You need to finance the buyout of fellow shareholders who wish to retire, or perhaps due to a buy-sell clause in the shareholders agreement (sometimes referred to as a "shotgun clause")
- Your company needs capital to fund an acquisition, shareholder distribution, management buyout, or a transaction to take the company private
- Your company requires financing to support internal growth opportunities such as working capital or a plant expansion
- Internally generated profits together with senior debt are insufficient to meet the needs of the company.
Our team's extensive knowledge of Canadian and U.S. capital markets and strong relationships with capital providers positions us as your advisor of choice to arrange and secure private financing in the form of common and preferred equity, mezzanine debt, subordinated debt and senior debt.
We will work with you to perform a detailed financial analysis of your objectives and growth opportunities and determine the optimal funding structure while balancing the blended cost of funds with the acceptable levels of financial risk to provide sufficient flexibility. We will identify and review potential investors and their investment criteria and create a marketing plan that will position your company as an attractive investment opportunity to create a competitive bidding environment of prospective investors. Finally, our team will secure the best possible terms and arrange for the due diligence, legal and other aspects of the transaction to be completed successfully.
View our most recent Capital Raising and Financing Deals (PDF, 75 KB) Opens a new window in your browser
Mid-Market Investment Banking
As a leading mergers & acquisitions advisor, we provide transaction services to private companies valued over $10 million.
We help business owners and shareholders:
- Sell their business
- Grow through acquisition
- Raise equity capital and secure debt financing
As one of the largest mid-market advisory teams of any Canadian bank and a track record of success that includes over 100 transactions totaling more than $3 billion, we successfully combine the resources of CIBC’s global franchise with a level of service normally associated with smaller specialty firms. Our team of seasoned professionals has offices in Toronto, Montreal, Vancouver, Calgary, Edmonton and Halifax to provide clients service across all regions of Canada.
Business owners and management work with us because we offer our clients:
- A proven track record of successful deal closings
- A dedicated focus on mid-market companies
- Access to CIBC's global resources and industry expertise
- Significant cross-border and international experience
- Extensive access to corporate and financial buyers
- Capital structuring expertise
- Quality service, advice and execution