Management Buy Outs

A Management Buy Out (MBO) provides an attractive option for a business owner looking for continuity and stable succession. It also provides management teams with the opportunity to make significant capital gains from what can be relatively modest initial investment.

Success Factors

• Effective management team with the desire for ownership and ability to execute future strategy.
• A commercially viable business with a track record of profitability and cash generation.
• Willing seller with realistic price expectations.
• Robust business plan which demonstrates the business can service the funding required.
• Future exit opportunity to enable investors and management realise their investment.

An MBO provides an attractive option for a business owner looking for continuity and stable succession. It also provides management teams with the opportunity to make significant capital gains from what can be relatively modest initial investments.

Typical MBO scenarios

• Retirement of owners (of privately owned company)
• Non-core subsidiaries sold to realise cash to invest in core activities
• Financially distressed groups needing to raise funds
• Businesses in insolvency sold as a going concern
• Institutional owners (e.g. private equity funds) wanting to realise their investment

How we can help

• Advise you on the feasibility of an MBO
• Lead negotiations with the vendor
• Help you to complete your business plan
• Help you to raise funding
• Project manage the process on your behalf