Management buy out

An MBO can often be a great way to transfer ownership of a business. It can, if well structured, enhance value for the owner and reduce transaction risks. Further, it can ensure continuity for customers and other stakeholders.

For the buy out team this can also be the lowest risk way of acquiring a business – if they don’t know the business who does?

Sometimes a buy out will be enhanced by bringing in one or two key experienced executives to compliment or build upon an existing management team.

We can assist on every stage of the transaction. As experts in this area we are often engaged to:

• Help to structure the transaction, including acting as a go between for the vendors and management, bringing our practical and deliverable experience during difficult stages of a transaction – “is this usual”, “have you seen this before”
• Advise on feasibility plans, business plans and modelling (testing robustness of assumptions and modelling scenarios)
• Identify and introduce the right funders to take the deal to and understanding their requirements for information etc.
• Provide tax structuring advice
• Project manage the sale process to minimise risk and ensure a smooth completion