In most cases, a Management Buy-Out (MBO) will attain less consideration than a conventional trade sale, but many owners will accept this discount if some of the above factors are present. So as a potential MBO team, you now find yourself with a “once in a lifetime” opportunity to acquire the business you know inside out. Often at less than market valueWhat next ? – CONTACT US
During a Management Buy Out our role is pivotal, we work alongside you to in all aspects of the MBO process from start to finish, which will incorporate the following:
1. Initial negotiation of the consideration with the vendor (or their advisers).
It is important that we are engaged at this early stage on your behalf, as it establishes your serious intent and should negotiations fall down for any reason, you are distanced from these. After all you still have to work there if the deal falls through.
2. Assisting you in the preparation of a comprehensive business plan, incorporating financial projections to substantiate to potential lenders that this is a credible MBO, and can meet its funding obligations.
3. We then source the finance, often from more than one lender, in order to get the most suitable blend of finance for your MBO. Every deal is different, therefore every blend is different. Our funding packages are “tailor made” for your deal, we don’t simply rely on the high street funders.
4. We liaise with your solicitors, the vendor, their solicitors, your funders, their due diligence teams, etc.
We project manage the whole transaction to a successful conclusion, leaving you to concentrate on running the business.