Management Buy Out Funding

MBO Funding is a specialist area of finance sourced specifically for management buy outs or buy ins. A Management Buy-Out ("MBO") is when a business is sold to the existing management team. As the existing management have inside knowledge of the business they are in the best position to take the business forward.

In many cases, selling to the management is the preferred option to the existing owner, rather than selling “into the trade” for a number of reasons:

  • Unwilling to disclose sensitive information to competitors for a deal that may not complete.
  • Empathy with the existing staff’s efforts over the years and wanting to “give something back”
  • MBO team is key to the future success of the business, and would resent  a trade buyer