Since the Firm's inception in 1986 Renaissance Partners has extensive experience in assisting clients to successfully complete MBO's valued in excess of $6 billion.
Renaissance Partners offers a complete battery of services in consulting and investment banking backed up by the legal assistance needed to close transactions. Working on a turnkey basis, Renaissance will test, structure and complete a transaction; thus breaking the stalemate created by a difficult-to-divest operating unit.
Renaissance Partners' principals have structured and completed buyouts using the full range of leveraged financing tools-multi-tier debt structures involving senior, junior and mezzanine debt; debt with equity features like warrants; debt convertible into equity; and preferred stock convertible into other classes of preferred or common stock. Our seasoned cadre of professionals brings experience and proven teamwork to the task; gone is the time consuming job of assembling diverse talents with all of the attendant problems of miscommunication, conflict and delay.
For the parent company, our turnkey management-buyout program will often secure a price for a divested business unit that is higher than liquidation value, that avoids closure costs and that advances the corporate restructuring program. For the divested business unit, the MBO can inject a new dose of entrepreneurial vigor to turn a struggling business unit into a viable stand-alone company.
In the early stages of our work on behalf of the buyout program, Renaissance Partners free the parent company management from the burden of dividing their loyalties between the parent company and the buyout prospect. Later on, Renaissance Partners provides the independent guidance and expertise that managers of the divested unit need to make the transition from business-unit management to corporate leadership. For the local community and the regional economy, the program helps to reinvigorate longstanding corporate citizens, gain new ones, and avoid the bitterness and ill will engendered by loss of employment and shutdowns.
Our MBO program addresses these three key questions:
Keys to a Successful Management Buyout:
Renaissance Partners' believes that the MBO is often the ideal but untapped resolution to the situation of the underappreciated business unit. This approach facilitates the often painful process of corporate restructuring which gives new life to essential industries and maintains the economic health of our economy.
We welcome the opportunity to be of service, and ask interested parties to direct their confidential requests and inquiries to:
Renaissance Partners, LLC
11th Floor, Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222
Telephone: 1.866.266.5666
Our MBO program addresses these three key questions:
Some businesses are good candidates for MBO's. Some are not. That's why Renaissance Partners first conducts a preliminary assessment of a business unit proposed as a management buyout. We define the ingredients for success and identify insurmountable problems.
Renaissance Partners will analyze historical operating financial data; research products, markets and competitors; interview key managers; and study production operations and efficiencies.
Renaissance Partners will help to identify aspects that have special importance-pension, labor and environmental costs that can be avoided by keeping plants running, preserving tax loss carry forwards and employee dynamics ripe for a change in ownership.
This assessment highlights the suitability of the divestiture candidate for a buyout and defines key issues. Early on and at modest expense, management can then make an informed decision about supporting the buyout effort.
If the preliminary analysis shows promise and management elects to proceed, Renaissance Partners will prepare a business plan for the buyout company. Included are pro forma financial statements (with debt and equity financing assumptions), operating plans, marketing plans, ownership and management structures, profiles of key managers and a transition strategy.
Drawing on our management consulting talents and the investment banking expertise, Renaissance Partners tailors a financing program, which will meet the company's needs and win long-term investor interest and then presents the business plan to the financial community.
Opportunities are explored for cost savings in all aspects of the business. Consideration is given to whether borrowing costs can be reduced using government economic development programs.
In the third phase of our program, Renaissance Partners proceeds to finance and implement the MBO.
Renaissance Partners has extensive experience working with the tightly-knit fraternity of financial sponsors of buyouts. This experience and knowledge of sources of capital enables Renaissance Partners to match the buyout company's financing needs with capital.
Inevitably, the interests of financial sponsors conflict with claims of hourly employees, key suppliers and customers, and existing creditors. Renaissance Partners reconciles these competing positions based on more than two decades of credibility and experience. All so the deal can go forward.
In this phase, Renaissance Partners taps the legal experience of Keevican Weiss Bauerle & Hirsch LLC ("KWBH") (www.kwbhlaw.com) on behalf of the managers participating in the buyout. Because of their familiarity with the project, KWBH lawyers integrate the elements of the first two phases.
To implement financing arrangements, KWBH lawyers order the interests of multiple financing parties-senior, subordinated, mezzanine and equity. They also negotiate solutions to vexing legal issues such as intellectual property rights, labor contracts and environmental compliance.
All in all, these efforts are directed toward reducing the complexities of initiating, structuring and implementing MBO's that often cause them to fail.
Keys to a Successful Management Buyout:
Through an MBO, the business experiences an entrepreneurial rebirth, a transition laden with momentous risks and promises of rich rewards. And always there is the burning question: Will it work?
The Renaissance Partners' program is designed to answer this question in the early stanges and then make the workable buyout succeed. Behind this program is a dedicated team of professionals who have been successfully orchestrating MBO's since 1986.
Throughout the program, the Renaissance Partners' team is an advocate of both the business and the management team. It finds innovative solutions to the financial challenges the business faces or may face in the future. Renaissance Partners combines its leadership and talent with those in executive management to drive results to meet the corporate objectives.
Renaissance Partners maintains strong relationships with institutional investors and other sources of capital so that clients are presented with a full range of alternatives to enable them to achieve their financial goals.
The essence of investment banking is the ability to structure a financing plan with the assurance that it will attract the capital it deserves. And no one does this better for $10 million to $500 million companies than Renaissance Partners. Renaissance Partners' principals have structured and completed buyouts using the full range of leveraged financing tools-multi-tier debt structures involving senior, junior and mezzanine debt; debt with equity features like warrants; debt convertible into equity; and preferred stock convertible into other classes of preferred or common stock.
