Could a potential conflict in preferred valuation/outcomes/mgmt team cause issues? Better to run them separately / one first? Or if we're going for intended exit, should we focus on that so it's all aligned? Without extra funds, mgmt team would need PE support which imagining would be a lengthy process to secure, especially if value circa $30M. And better to have mgmt team chasing their existing and potentially lucrative equity reward, renegotiating any ongoing opportunities with a new acquisitor for post exit, rather than holding a similar share, rolling under a PE investor in an MBO with a potentially more challenging ride ahead?
These are questions best addressed by the corporate advisory service handling the sale of the business.
It is not necessarily a lengthy process to secure a PE deal. Some PE firms are well placed to take a quick decision provided, and this is an important caveat, provided you are well prepared and have all your ducks in a row.
And you have the advantage of a full management team and one (presumably) already motivated by a share incentive scheme.
It's imperative you have a good corporate finance adviser on board. It may well be that your best option is for the management team to raise finance independently and without relying on PE.
I must confess that the latter part of your post has lost me completely and I've no idea what you're trying to get clarified!
Answered 5 years ago