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Redtail Capital - Unlocking Business Value


Your Exit GoalsBusiness Exit OptionsBuilding Business ValueBusiness Exit ProcessWhy Choose Redtail Capital?

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Family Transfer

Leveraged Buy Out (LBO)

Management Buy Out (MBO)

Employee Stock Ownership
Plan (ESOP)

Private Equity Recapitalization

Gift or Charity 

Public Offering


Management Buyout

The most logical buyer for your business is your management team. They know the business, they know the customers, and they are motivated.

You can decide to sell all or just part of the business to your team, providing them with incentives to perform and create profitability, cash flow and value. In most cases, the team will not have the financial resources needed to purchase the company outright, and may have to use leverage (see our LBO page) in order to do the deal.

With a MBO, the company stays in the "family." You may decide to keep a little of the equity in order to keep you hand in and hopefully capture some upside. Your employees will have less disruption and the chain of command stays fairly stable. 

The biggest obstacle in many cases is the ability of the management team to obtain the financing necessary to execute the transaction. One funding strategy to consider is the use of a TIGRcub security, in which the existing revenue stream of the company may be leveraged to provide the capital needed to execute the transaction.

If this is the option you wish to take, you can explore the option thoroughly at your convenience, as nobody outside the company needs to know that there is a potential transition on the horizon.

We can help you and your management team analyze this possibility and identify possible lenders that can fund this type of transaction.