Cash-out Transactions

Cash-out transactions allow shareholders to:

• Diversify their wealth and de-risk without an outright sale
• Retain a shareholding and influence in their business
• Resolve succession issues
• Groom the business for their final exit - either by sale to a third party or the management team or flotation
• Provide equity incentives for secondary management teams (or indeed for not yet identified members through, for example, an Employee Benefit Trust)
• Provide access to additional capital if required to maximize the business’s growth plans

Rickitt Mitchell has significant experience in structuring transactions that facilitate a phased 'handover' of the equity ownership.  These transactions allow the founder shareholders to realise a proportion of their existing investment, while retaining a share in the future growth in value of the business.

Our skill is in designing deal structures that optimise the future returns for both the old and new management shareholders, whilst also ensuring an appropriate financial structure for the business’s growth plans.

If you would like to discuss cash-out transactions in more detail, please contact a member of the team.