CASE STUDY: How a Backable Executive Partnered with an Independent Equity Sponsor to Facilitate a Management Buyout

THE SITUATION

A CEO in-transition (CIT) was engaged as a consultant by a specialized distributor to develop a value-added strategic plan and expand the Company’s distribution channels. During this engagement, the owner received an unsolicited offer to buy his company. While the offer was appealing, it required the owner to continue operating the company when he wanted to exit.

THE OPPORTUNITY

The owner approached the CIT to see if he would be willing to be his successor and step into his role post-closing. The CIT saw this as an opportunity to lead his own buyout of the company, rather than work for the group that made the offer.

THE CHALLENGE

Receiving serious consideration. The CIT had no experience acquiring a company and didn’t have the financial wherewithal to fund the acquisition.

THE SOLUTION

StoneCreek Capital and the CIT teamed up as partners and presented a counter-offer, which the owner accepted..

For more information, contact:

Bruce Lipian
Founding Principal + Managing Director
StoneCreek Capital

StoneCreek Capital is an independent private equity sponsor based in Orange County, California. StoneCreek focuses on acquiring companies with enterprise values of $10 million to $100 million in a variety of industry sectors. Founded in 1992, StoneCreek has sponsored the acquisition or recapitalization of more than 40 companies.

StoneCreek has distinguished itself with its unique approach to partnering with exceptional executives, proven ability to secure financing, and well-established credibility with deal referral sources.