Following a successful corporate turnaround and, more recently, a leveraged recapitalization, management of a highly profitable, fast–growing outdoor advertising company must consider alternative ways to harvest cash flow from the company without jeopardizing the turnaround or incurring significant tax liabilities.
A company nears the end of a long multiyear turnaround and now must consider how to “cash out” so its management can realize a financial return on investment. The privately held company has several options, including a leveraged ESOP and a leveraged recapitalization.
In the largest attempted employee-buyout in history, a large U.S. commercial airline seeks substantial wage concessions from its employees in return for 53% stake in the airline’s common stock and guaranteed seats on the board of directors.