MBO / MBI
Management buy outs
- A management buy out ( MBO ) is where a management team acquires ownership of the business in which they work
- 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 can create significant wealth for both the exiting owners and the MBO team and a balance of the risks and rewards
- 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 for the future direction for the business
- Attractive MBOs are popular with financiers and have a high success rate
Management buy ins
- A management buy in 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
How can we support you through an MBO/MBI process?
- We will obtain a full understanding of the business and assist you in the preparation of a business plan and financial projections
- We will work alongside you to understand your objectives and can advise on valuation, deal structure and tax planning
- We can support you in negotiations with the vendor and your financiers
- We will project manage the transaction and the requirements of your financiers and other professional advisors
- Our involvement will help the MBO team minimise the disruption to the business caused by the distraction of their management time
For further information on our services please contact your local office or complete the enquiry form and we will be in touch shortly.
| London t: 44 (0)20 7387 5868 |
Solent t: 44 (0)1489 566 700 |
| Portsmouth t: 44 (0)23 9275 4820 |
Thames Valley t: 44 (0)1753 759 000 |
