Leveraged Buyouts & Recapitalizations

A flexible approach balances debt management and working capital needs

Businesses in acquisition mode often turn to First American Bank for help with leveraged buyouts. We build the type of relationships that facilitate successful deal-making, and stay flexible in structuring financing that works best for all parties.

• First American Bank has financed leveraged buyouts directly with principals of privately-held businesses, as well as partnering with private equity sponsors and mezzanine lenders.
• Our philosophy is to stay flexible while appropriately managing the repayment of the higher-priced cash-flow debt with the working capital needs of the business.
• We view these financing transactions as relationship driven, while preferring the existing ownership to retain some equity.
• Frequently, we refinance out the higher priced subordinated debt once the “senior debt-to-cash flow” levels warrant.
• Generally there is no time horizon for an exit from the relationship, and our customers will not be moved from one lending group to another based upon their needs.