Management Buy-Out (MBO)

Management buyouts (MBOs) can offer exciting opportunities to management teams but are typically complex, time-consuming and risky transactions.

Our Deal Advisory team has significant experience of working on such transactions, advising and supporting management teams through the buyout minefield.

Managing a business whilst also trying to acquire it can present some obvious and significant challenges; there are many factors that need to be considered including finance raising, deal structuring, deal management, and tax planning to name a few. Having a trusted advisor can provide management with the confidence to make the difficult steps to business ownership.

We help manage the process from inception to conclusion

  • The initial assessment of a potential transaction to assess whether it is feasible and in the best interests of management;
  • Tactics for approaching the vendor – it’s crucial to get this right to ensure that management is taken seriously;
  • Appropriate value and structure;
  • Negotiating terms with the vendor;
  • Preparing business and financial plans including detailed financial projections;
  • Securing funding that fits the deal and which meets the objectives of the management team - we have strong relationships with the UK’s leading equity and debt providers and are well placed to find the optimum funding solution; and
  • Project managing the process to completion including coordinating due diligence and legal.

There can be many variations on an MBO including Management Buy-Ins (MBIs) which are rarer and riskier and Vendor Initiated MBO (VIMBOs).

For owners who want to bring in a new management team or experienced managers looking to acquire equity in a business (MBIs), we can help identify acquisition targets, negotiate deals and raise the necessary equity and debt funding.

VIMBOs can often bridge the gap between a vendor's requirements and the availability of funding. They can be used to facilitate a full or partial exit of a business for a business owner.

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If you would like to contact the Financial Advisory team, please contact us or use the link below to submit Request For Proposal documents

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