The founder and majority owner of a profitable manufacturing business wanted to retire from active participation in the business and diversify his wealth. His minority partner and fellow officer wanted to continue to grow and manage the business. They had been approached by private equity fund buyers but were not happy with the lack of chemistry in what would be an ongoing relationship.
Based on the strong operational results and balance sheet, including real estate owned by related entities, the minority owner was able to obtain financing for a leveraged buyout of the majority owner without giving up control. The majority owner was happy with the price and with his retirement.