De redactie

Financieel Management

For the sole purpose of buying the company and financing the purchase price management and the investors create a new company (Newco).

In the most common structure, Newco acquires 100% of the shares in the company and thus becomes the holding company. To fulfil the takeover price Newco attracts different types of financing from different sources.

After the buyout Newco and the company will aim to form a single fiscal entity allowing interest payments by Newco to be offset against taxable profits at the company. The principal shareholders of Newco are the management and investor(s). Subsequent acquisitions will also be funded through Newco (with debt and/or equity).

« Terug naar Management Buy Out