MBOs & MBIs

A management buy out (MBO) is where a management team acquires ownership of the business in which they work, whereas a management buy in (MBI) involves a new management team making the acquisition.

For an exiting owner, an MBO can offer an attractive succession plan as there will be continuity of management and no requirement to disclose confidential information to outside parties.

An MBO is a suitable option for businesses with retiring owners, a track record of profitability and a strong, motivated management team with a clear vision for the future direction for the business.

When advising a management team, our role would typically involve:

• an initial feasibility study to obtain a full understanding of the business and assist you in the preparation of a business plan and financial projections
• develop your strategic objectives and advise on valuation, deal structure and tax planning
• support you in negotiations with the vendor and potential financiers
• project manage the transaction and the requirements of your financiers and other professional advisors

Our involvement will help the MBO team minimise the disruption to the business caused by the distraction of their management time.