The OBO is a form of LBO in which the operation for the buy-out of the company involves the owner themselves. The OBO fulfils two objectives: the delivery of an ownership-based solution and the financing of growth.
Conducting an OBO involves the opening-up of your corporate capital to a capital investor, thereby permitting:
I – The generation of liquidity from a proportion of your shares, and those of any partners (up to 74%, while retaining a majority shareholding);
II – The reinforcement of the capital and reserves of your company, and the acquisition of the requisite resources for expansion.
At the initial stage, the role of EURODEALS involves the validation of the feasibility of an OBO (strategic and financial criteria, qualification of share-owning directors, etc.), the definition of the outlines of the operation (minority or majority shareholding, etc.), and the provision of assistance in the preparation of an ambitious and credible 3 – 5 year business plan.
We then select the capital investors who are likely to be interested by the purpose and scale of your project, who are then compared competitively. We help you to select the most appropriate partner (in terms of philosophy, management package, entry price, terms of repayment, accretive arrangements, calibration of the leverage effect, breakdown of capital, fiscal integration, the Charasse amendment, etc.).
It is important that you select your future partner in full knowledge of the facts. We will introduce you to a number of investors, who may have different styles and approaches.
Ultimately, what will really count, above and beyond quantitative parameters for the operation, is that a partnership of this type should be based upon a strong reciprocal co-optive approach between you and the investor.