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Blog - Published 5th December 2016

Management Buy-Out (MBO) – What’s it all about?

Management Buy-Out (MBOs)

Management buy-outs (MBOs) are becoming increasingly popular for both owner-managed businesses and large corporates as a form of exit. Watch our latest animation to find out whether the MBO route is the right path for you and your business and the necessary steps you need to make…


kevin paget

Achieving your goals

Menzies’ hands on approach, includes project managing your MBO process from start to finish, allowing your management team to keep a close eye on the business. The process typically takes 6-9 months, and can be divided it into 4 key phases.

 

Phase 1 = Shaping the deal

We undertake a feasibility study to analyse the existing business in order to ascertain a business valuation and a suitable deal structure for discussion.

Phase 2 = Agreeing the deal

We speak to and gain support from funders in order to agree a deal that is achievable and fundable and one that works for all parties.

Phase 3 = Securing funding

We assist the management team to write a business plan and produce detailed financial projections for presentation to suitable potential funders. We will also negotiate with the funders to improve the investment terms for the management team. Funding can come from a mixture of some or all of: management team putting up some hurt money; vendor deferral; bank/debt finance; private equity.

Phase 4 = Drive completion

We oversee and advise throughout the due diligence and legal process, hand holding through to the successful legal completion of the transaction.


Hear from our clients

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“The advice offered by Menzies throughout the process was invaluable. The positive and determined attitude kept the momentum going, whilst always working to ensure our best interests were met”

“Menzies was always on hand to deal with any issues that arose and was a great help at every stage of the journey. He quickly gained an understanding of our business and worked tirelessly to take the transaction to completion.”


Get in touch

To find out more about your Management Buy-Out options, please contact Menzies Director Kevin Paget by email at KPaget@menzies.co.uk or on 07946 076726.

Menzies Corporate Finance advisory specialises in the lower and mid-market and is focused on providing valuable advice and services to clients, investors and providers of capital.

Find out more about Menzies Corporate Finance Advisory services.

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Kevin Paget - FCMA CGMA

Director

Kevin Paget is a Corporate Finance Director, member of the Corporate Finance advisory services team and specialises in corporations, SMEs and start-ups.