RESOURCES

Buyouts

American Capital often acts as an equity partner in management and employee buyout transactions. Our strengths in this area include:

Investment Philosophy

American Capital looks for sustainable competitive advantage, a core business with long-term cash flow and growth potential, and an experienced and committed management team and employee base. We will consider investments in companies in a broad range of industries.

Experience

American Capital has funded over 110 buyout transactions. These include growth, turnaround, buy-and-build, employee buyout, going-private, and leveraged recapitalization structures. Each of our principals has many years of private equity experience.

Stability

As a public company, we can invest with a long-term time horizon. This makes us a preferred partner relative to limited partnerships, which typically have finite life and must sell investments in order to return capital to investors a few years after the buyout.

Certainty

Because we can invest up to $800 million and are prepared to provide bridge senior debt to close a transaction, both sellers and management teams can have a high degree of certainty that funds needed to close will be available.

Speed

We have a flat organizational structure and an effective review process. Although we are known for intensive and focused due diligence, we are also able to make investment decisions rapidly.

ESOP Expertise

American Capital has been a leader in the use of ESOP's to incentivize employees, improve productivity, and create tax advantages for sellers and companies. Where appropriate, we can help implement an ESOP to enhance a buyout transaction.