LBO, MBO Recapitalization

8/19/2019 LBO, MBO Recapitalization

1/14

GOING PRIVATE TRANSACT


2/14

LBO ESMBOLeverage Buyout

The acquiringparty i a private

equity !r"

Manage"entBuyout

The acquiringparty are the

current "anagero# the corporation

E"p$oye

O&nerh The acqparty a

e"p$oyeecorporati


3/14

LEVERAGE REC()AL*CLASSRECAPITALI'ATION

A #or"er$y pu+$ic

co"pany that hapreviou$y goneprivate throught

LBO an, thengoe pu+$ic again

Iuance o# a ne&c$a co""on

hare &ith theintent o#

concentratingcontro$ o# voting

right in one groupo# invetor-

.hen a cgret$y inc

the port,e+t in ittructureretiring e

the pro

REVERSE LBO


4/14

(e#enive "eaure that"any co"panie re$y on to&ar, o0 urprie orun&ante, ta%eover

atte"pt-

TA1E OVER (E2ENSES (IVESTIT)R

Aet an,3or reu+i,iary or ,iv

conveye, to aorgani4atio


5/14

Asset SaleAet o# co"pany are o$e toanother oragani4ation/ uua$$y #orcah-


6/14

Spin OffA parent co"pany create a ne&co"pany &ith it o&n hare to#or" a ,iviion or u+i,iary-


7/14

Split OffA parent co"pany create a ne&/in,epen,ent co"pany &ith it o&nhare-


8/14

Split Up The ,iviion an, a$e o# a$$ o# aco"pany5 u+i,iarie/ o that itceae to e6it-


9/14

Bust Up The ta%eover o# a co"pany that iu+equent$y p$it up-


10/14

ACCO)NTING TREATMENTMERGERS AN( AC7)ISIT


11/14

I# the acquiring !r" pai, "ore tthe #air va$ue o# the target5 netaet/ it recogni4e the ,i0erenca an intangi+$e aet ca$$e,

GOODWILL

I# the acquiring !r" pai, $e thathe #air va$ue o# the target5 netaet/ it recogni4e the ,i0erenca an intangi+$e aet ca$$e,

GAIN ON ACQUISITIO


12/14

REG)LATION O2 MERGERS AAC7)ISITIONS


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8I 9 :;;


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PRE MERGERCONCENTRATION

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LBO, MBO Recapitalization