Management buy-out (MBO) and management buy-ins (MBIs) are complex yet exciting transactions that need professional project management to ensure that they are 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. An 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 of the future direction for the business.
A MBI is similar 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, 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.
Menzies corporate finance services
Mike Grayer – Corporate Finance Partner
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.
“Menzies’ involvement in the buy-out process was instrumental in ensuring its successful completion – not only was the management team offered excellent commercial advice on the terms of the buy-out and assisted with the raising of the required finance, but also we were provided with the emotional and professional support throughout to help us get through what is, in reality, a very difficult and exhausting process”
MD, Recruitment Group MBO Team
To speak to a partner or for more information about the services we offer please contact one of the Menzies LLP offices or complete our online contact form.