CASE STUDY: How StoneCreek Capital Facilitated a Management Buyout
THE SITUATION
A U.S.-based Private Equity Group engaged an investment banking firm to sell off a Division from one of their portfolio companies. After failing to receive any offers meeting their minimal valuation requirements, the sale process was terminated and the Division was pulled off the market.
THE OPPORTUNITY
The President of the Division believed he could significantly increase the Division’s value if he could acquire the Division himself.
THE CHALLENGE
Being taken seriously, since the President had no experience acquiring a company and didn’t have the financial wherewithal to fund the acquisition.
THE SOLUTION
StoneCreek Capital and the President teamed up as partners to acquire the Division. Together, they submitted an offer that was acceptable to the Private Equity Group owners and successfully raised the capital to close the transaction. In addition, their financing sources reserved additional capital for add-on acquisitions.
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.
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