Planning a business exit is far from simple and it is important to know which exit route will work best for you. Finding the right buyer can be a challenge but sometimes, what you’re looking for can be right in front of you. A management buyout (MBO) i.e. selling your business to your existing management team, presents many advantages; you know and trust those who will be taking over, they know the ins and outs of the business already and the preservation of your company culture is a given.
In this specialist workshop, we will be taking an in depth look in to the process of a management buyout (MBO) and we will be joined by the Managing Director of Barrett Dixon Bell, Matt Smith who recently completed an MBO. HURST Corporate Finance acted as lead advisor on this transaction, so both parties are well placed to offer true insight on what the process involves.
Generally, we consider that businesses with the following characteristics lend themselves to management buyouts:
- Strong existing management team
- Sustainable profit and cash generation
- Consistent, visible income from long-term contracts
- High barriers to entry
- Low shareholder involvement
Ability to service any debt should the MBO should this have been funded, typically by a bank
If you are thinking about your business exit and you think that your existing management team might be a suitable candidate, please get in touch with us and we can advise you on the next steps in the process.