Management buyouts and buyins

Enabling management teams or entrepreneurial individuals to acquire a privately owned business.

Our experienced corporate finance team will advise and support you throughout the whole MBO process, starting with the initial concept through to completion, helping to negotiate the steps required to select potential funders and providing you with a detailed business plan that includes financial models.

The initial stage is to understand the team’s objectives and to gain an in-depth view of the business, its primary markets and drivers.

Throughout the process, our team will remain closely involved in the project and advise through legal negotiations, as well as due diligence with the vendor and related parties.

Management BuyOuts (MBOs)

Managers may only be involved in one MBO in their lives so appropriate advice at an early stage is sensible when embarking on such a complex transaction.

It may also appear that an MBO is not an option because of insufficient personal funds to buy the company. When funding an MBO however, a large proportion of the transaction is often funded by institutions such as a bank or private equity house making them more practicable than perceived.

We will project manage the whole process through to legal completion in order to allow business owners and managers to remain focused on the operational running of the business.

Management Buyins (MBIs)

Where there are no obvious successors within the existing business or the current managers do not wish to purchase the business, an external management team can effect a Management BuyIn.

MBIs can be difficult to negotiate, both from the perspective of the vendor who will wish to minimise uncertainty for the existing workforce and from the MBI team, who will need to grasp a complete picture of an unfamiliar business in a short period of time. An MBI can help to refresh a business and generate renewed growth by bringing in additional expertise and a different strategic perspective.

What we offer

Tailored advice to businesses across all sectors

  • Discreet meetings with the team to refine the MBO/MBI proposal and advise on likely funding sources
  • Negotiate terms with vendor(s)
  • Strong relationships with equity and debt providers making us well placed to access funds

How we can help with your MBO/MBI

We will ensure that:

  • The feasibility of the MBO/MBI is properly assessed
  • The right price and terms are negotiated
  • Access is gained to the most appropriate sources of finance
  • You have a high quality, credible business plan to present to funders
  • The whole process is effectively and competently project-managed

Quotation symbol

Jennifer Williamson, Des Sudworth and Stephen Metcalf were integral in advising on the successful management buy-out of PFPR Communications Ltd. They guided us throughout the transaction with business valuation support,... More share structure advice, tax and strategic support as well as advising on the content of the Share Purchase Agreement. They also supported us with planning ahead as far as the ownership of the company is concerned and setting up a strategy to reward the directors and investors going forwards. The support they provided throughout the process was invaluable and we are looking forward to continuing to work with them to build on the already successful business going forwards. Peter Cox, Managing Director at PFPR Communications

Want to learn more about how we can help?

Contact us to arrange to speak with one of our specialists in London, Kent and Sussex.

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