A soft leveraged buyout is a structured program that enables a Buyer and Seller to create a mutually beneficial transaction. In this arrangement, the buyer can participate in the transaction by contributing a percentage of cash, providing working capital on a mezzanine basis, and assuming a senior management position, thus alleviating the seller’s workload. Concurrently, the seller can safeguard their interests by remaining involved and acting as the senior bank until full payment is received. This “working transaction” essentially establishes a partnership between the buyer and seller. The buyer demonstrates their commitment by having a financial stake in the transaction, while the seller develops an exit strategy. Together, they have the potential

to enhance the value of the transaction over a specific period.