Management Buy Out & Buy In
Enabling a smooth transition from one management to the next
One of the paths most likely to enable a business to transfer its ownership is a Management Buy Out.
But an MBO is a delicate beast. All parties have a vested interest in the deal and a failed transaction can be highly problematic. Problems arising from negotiations may even result in a serious breakdown between a management team and the owners of the business.
The solution is in finding an advisor who understands the key drivers for all parties involved in the deal and can establish a suitable valuation for the business in question. This will enable the existing owner to pass the baton in a fair and robust way, while giving the new owners the best platform from where they can continue the success of the business.
We are highly experienced in advising our clients on all aspects of an MBO. This includes advising on more challenging deals, such as an MBI or where a business is not on the market but where a management team feel they should have an equity interest of their own. We can also represent management when a business is being marketed widely and the existing team wish to put in a bid of their own.
Our other corporate finance services
We can help managements understand the potential exits available to them and have worked with some of our clients over a number of years to ensure they have the best chance of a successful exit.
Throughout an acquisition, we are able to advise on transitional arrangements and always ensure the acquiring business is not exposed to unacceptable levels of risk.
It is critical that companies raise the right sort of finance, at the right moment in their development. We offer our clients a highly professional approach, enabling them to avoid the many potential pitfalls of a process. This includes the ability to introduce the opportunity to a wide base of appropriate investors, helping owners select the right long-term partner and negotiating suitable terms for the transaction.
When available, taking on a suitable level of debt is often the most efficient way to fund a business. However, the legacy of the financial crisis has made this sort of borrowing a far more challenging task.
The valuation of companies is at the core of our corporate finance offering. This real world experience enables us to offer comprehensive valuation reports for businesses of all shapes and sizes.