Management buy-out (MBO) and management buy-ins (MBIs) are complex yet exciting transactions and need professional project management to ensure that the transaction is completed smoothly, without any negative effect on the business.
For an exiting owner, an MBO will offer an attractive succession plan as there will be continuity of management and no requirement to disclose confidential information to outside parties. MBO is an attractive option for businesses with retiring owners, a track record of profitability and a strong, motivated management team with a clear vision for the future direction for the business.
A MBI is similar to an MBO, but the management team is external to the business. The risks are different, as MBI teams will not have the same detailed knowledge of the business as an MBO team, but the latter could potentially have gained sector experience and could therefore identify the potential a business has to generate good returns to its shareholders.
We can assist you with each stage of the process, offering sound commercial advice and support, enabling you to remain focused on running the business.
Our services include:
- Assessing the viability of the proposition
- Valuation of the business to be acquired, deal structure and tax planning
- Preparing a business plan and financial projections
- Structuring the business
- Raising capital
- Negotiations with vendors and financial backers
- Project management of the transaction throughout