Management Buy-outs (MBO) and Buy-ins (MBI)

You are a successful management team. You know how to grow your business and manage customers, suppliers and employees to drive profitability. Now you have the chance to become the owners of the business. You have the opportunity to build wealth for yourself, rather than for the shareholders.

This may well be a once in a lifetime opportunity, but beware, the consequences of getting it wrong can be severe. This is why it is critical to get specialist advice. The buy-out process can be technically complex, it will certainly be time consuming, and will carry a considerable financial risk for the management team. To minimise the risk it is crucial to get in place a financial structure that supports the business realities.

We advise buy-out and buy-in teams to approach a deal in much the same way as any other acquisition. We help you make a careful assessment of viability, including the chances of finding financial backers, and give an honest appraisal of your chances of success.

If you decide to go ahead our role will typically include:

• Helping you understand the risks and rewards of the deal;
• Advice and assistance in formulating a bid price, including preparing a post- acquisition business plan and financial projection;
• Project managing the deal process, and coordinating the inputs of various advisors;
• Supporting, or if you prefer leading, deal and contract negotiations;
• Modelling deal structures and the various options for financing;
• Arranging finance.