A management buy-out (MBO) usually represents an exit opportunity for some or all the shareholders of a business, where the management team are well placed to take the business forward. The process is often complex and time consuming, with the management team being required to deal with many parties, including the vendor, solicitors, banks, private equity houses, accountants and perhaps also employees, pension scheme trustees, trade unions, customers and suppliers.

 

We can assist you at every stage of the process, providing sound commercial advice and support to enable you to focus on running the business and delivering its ongoing performance.  

 

Management buy-in (MBI) opportunities are often a more challenging than management buy-outs given the lack of knowledge of the business and this being perceived as a risk by potential funders. The key here is to identify the right target business that compliments the MBI team’s experience. MBI’s are complex transactions that need professional project management to ensure that the transaction is completed smoothly, without any negative effect on the business.

 

We can explain and assist you at every stage of the process, covering:

 

• Identifying and approaching suitable acquisition targets (in the case of MBIs)

• Valuing the business

• Assessing the viability of the proposition

• Identifying and helping to fill any gaps on the management team

• Preparing a business plan and financial forecast

• Managing discussions with the vendors and their advisers

• Negotiating the purchase terms and price

• Raising the most appropriate sources of finance to fund the MBO/MBI

• Working closely with your lawyers to ensure the most favourable contractual terms are negotiated whilst a commercial perspective is maintained

• Proactively project managing the transaction through to completion