CONCEPT #94 OF 100 · Legal, CPA & Financial Advisory · LAYOUT: split_settlement
Private Equity Management Buyout (MBO) Term Sheet & Senior/Mezzanine Debt Sources & Uses
Standard / Reference: 26 U.S.C. § 351 / § 721 (Tax-Free Rollover) · UCC Article 9 Senior Debt · DGCL § 251
Why professionals use this template: 14,600/mo search demand: lower-middle-market PE funds and independent sponsors issuing MBO/LBO term sheets with EV/EBITDA multiples, Senior/Mezzanine leverage tiers, and IRC § 351 tax-deferred management rollovers.
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ACROFORM READY
Included Financial Metrics & Line-Item Schedule
Target Roles: Private Equity Sponsors, Independent Sponsors, M&A Investment Bankers & Deal Counsel · Search Keywords: private equity management buyout term sheet sources and uses pdf, lbo mbo sources and uses schedule template, irc 351 tax free management rollover equity, lower middle market pe term sheet
HEADLINE ENTERPRISE VALUE
$42,500,000.00 (8.5x EBITDA)
SENIOR + MEZZ LEVERAGE
$18,000,000.00 (3.6x Total)
SPONSOR CASH EQUITY
$18,500,000.00 (75.5% NewCo)
MGMT ROLLOVER EQUITY
$6,000,000.00 (24.5% IRC §351)
| CODE | DESCRIPTION & TECHNICAL SPECIFICATION | BASIS / QTY | AMOUNT / DELTA |
|---|---|---|---|
| SRC-SRD | SOURCE: Senior Secured Term Loan A (3.0x Adjusted EBITDA @ SOFR + 325 bps · 5-Yr Amort) | 35.3% of Cap | $15,000,000.00 |
| SRC-MEZ | SOURCE: Subordinated Mezzanine Debt Note (0.6x EBITDA · 10% Cash + 2% PIK Interest) | 7.1% of Cap | $3,000,000.00 |
| USE-CSH | USE: Cash Closing Consideration Wired to Selling Shareholders (Debt-Free / Cash-Free) | 83.5% of EV | $35,500,000.00 |
| USE-ROL | USE: Tax-Deferred IRC § 351 Management Rollover Equity + $1.0M Working Capital & Deal Fees | 24.5% NewCo Stake | $7,000,000.00 |
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