Buying or selling a business is one of the most significant decisions an organisation can make – both financially and personally.
Whether you’re a leadership team looking to purchase all or part of a company through a management buyout or an external team planning to step in through a management buy-in, our experienced team are here to guide you.
Management buyouts (MBOs) and buy-ins (MBIs) offer an opportunity to take ownership of a business, whether by an existing management team or an incoming leadership group.
Both routes can provide continuity, fresh direction and a platform for long-term growth, but success depends on having a clear financial strategy and a strong understanding of the business.
Whether you’re leading a management buyout or joining by a management buy-in, we will help you assess opportunities, coordinate with legal advisers and complete the transactions with confidence.
SECURE TRANSITION
Management Buyouts
A management buyout (MBO) is an exciting opportunity for an existing team that knows the clients, people and potential of the organisation to take control. It provides continuity, stability and creates a strong foundation for future growth for a company.
What they need is a strong financial plan, robust valuation work and guidance on securing the right funding – that’s where we come in. We support you by assessing the financial viability of a buyout, prepare detailed forecasts and structure the transaction in a way that protects everyone involved.
how we help
The management buyout process
Our goal is to help you move forward from management to ownership confidently.
Step 01
Preparation
The management team agrees to buy the business and starts preparing.
Step 02
Business Plan
A business plan is developed along with a strategy to implement once the buyout is complete.
Step 03
Investment
The management team asses the amount they can invest, whether from personal funding and/or further funding.
Step 04
Valuation
An assessment of the company’s financial health and obligations takes place to determine the value of the company.
Step 05
Agreement
A sale price is agreed between the seller and buyer (sometimes there’s a need for an independent valuation).
Step 06
Funding
Funders are approached to provide the money to complete the sale.
Step 07
Completion
The management team now owns the business.
CONFIDENT TRANSITION
Management Buy-ins
A management buy-in is when an external team executive team purchases the business and replaces existing leadership. MBIs can bring fresh ideas, different experience and further sector knowledge and skills that can be used to help drive the business forward.
For a MBI, we understand the importance of having the detailed insights you need so you can make a confident, well-informed decision. Our dedicated team will provide a through due diligence ensuring you fully understand the business’s financial health before moving forward with the purchase.
SPECIALIST GUIDANCE
Expert guidance on MBO and MBI Funding
Securing funding is often one of the biggest hurdles in both MBOs and MBIs. We help clients assess funding options that best suit their needs.
Bank loans
Private equity
Asset-based lending
Vendor financing
Investor partnerships
How we support you
Assessing the business profitability.
Creating projections and forecasts to help determine what price can be paid for the business.
Preparing offer letters and negotiating with the other party.
Working on various levels of due diligence and preparing reports when needed.
Engaging solicitors and supporting them to draft legal paperwork.
Experienced Professionals
Throughout the entire MBO or MBI journey, communication and collaboration are at the heart of how we work. Our dedicated corporate finance team will guide you through each stage, answer any questions you may have and give you confidence that your business is in experienced hands.
We’ve worked on many management buyouts and management buy-in’s since we were founded in 2009 ranging from deal sizes of c£500k to c£5m across multiple sectors.
A management buyout is when the current leadership team purchases all or part of a business. Some benefits of this are it helps ensure continuity as the management team is already familiar with the business and customers and financing can be simpler as they are typically funded by using business profits.
What is a management buy-in?
A management buy-in is when an external executive team acquires the business and replaces existing leadership. Some of the benefits of a MBI are that it can bring in a new team with different experience, ideas and more sector knowledge and experience which may not have been present. These new skills can be used to help drive the business forward.
