MCC Capital Equity Transaction Examples

From Ownership to Recaptialization

Family Succession

This type of transaction involves backing family management in buying ownership from a senior generation or from outside shareholders. Working with MCC Capital as a financial partner for growth, active family operators secure operating control and significant equity ownership in a family succession transaction. In addition, the selling shareholders achieve liquidity to meet personal estate planning and net worth diversification objectives. MCC Capital has worked with many family businesses, and is well aware of the need for discretion and confidentiality.

Management-Led Buyout

MCC Capital has a successful history working with incumbent managers to acquire companies, which they run, but do not own. MCC Capital adds financial credibility to management's ability to complete the buyout. Managers then earn an equity stake in conservatively capitalized companies while retaining daily operating control. Managers gain MCC Capital as a well-funded, knowledgeable partner to help them grow the business. MCC Capital principals invest their personal funds and intellectual property along with that of management's.

Management Buy-In

MCC Capital backs outside management in the acquisition of a company where the chief executive's departure leaves the business with a management void. MCC Capital also partners with qualified managers with a specific acquisition candidate in mind. Alternatively, MCC Capital has the ability to find suitable management when required.

Management Buyout of a Corporate Division

MCC Capital helps managers acquire divisions of parent companies. Corporations selling divisions require that a buyer have both ample funding and a history of closing transactions quickly and efficiently. MCC Capital, a well-funded and experienced partner, adds financial and strategic credibility to managers as they pursue their opportunity to acquire the division they run. MCC Capital has partnered with management to meet corporate demands and achieve management's goals, accomplishing such a buyout.

Industry Consolidation

MCC Capital backs management or business owners in acquiring other companies within their industry. Using its financial resources and acquisition expertise, MCC Capital can assist managers or business owners who are seeking strategic acquisitions, or acquiring and integrating a number of companies within a fragmented industry.

Owner Recapitalization

A recapitalization is an ideal solution for an owner who wishes to sell a portion of his or her company for liquidity or estate planning purposes, while retaining significant equity ownership to participate in the company's upside. This structure allows the owner to achieve personal liquidity without sacrificing operating control of the company. The owner also gains MCC Capital as a financial and strategic partner to assist with issues of future importance. Additionally, this transaction eliminates all personal guarantees tied to the company.