A Management Buyout (MBO) is when your existing management team steps up to purchase the business they already run. For business owners, it provides a smooth succession route while preserving culture and values. For managers, it’s a once-in-a-lifetime opportunity to take control of a business you know inside out.
A Management Buyout happens when a leadership or management team acquires a controlling stake in the business they already manage. Instead of selling to an external buyer, the owner sells to the people who know the business best.
It’s commonly used when:
However, there are some important considerations too. The MBO route often involves significant levels of financing/debt. It also requires an accurate, independent valuation and precise legal structuring to get right.
Every Management Buyout is unique, but the journey usually follows these key stages. Here’s how we guide you through each one.
Contact UsWe’ll help evaluate the management team’s readiness, the business’s ability to handle debt, and whether the deal can be structured successfully.
We can help you, if needed, to build a credible MBO team. This includes defining roles, responsibilities, ownership structure, and addressing any gaps with external advisors if needed.
This ensures pricing is fair, defensible, and acceptable to both the current owners and the management team.
We help you find the right funding mix, whether through bank finance, private equity, or vendor support, we’ll structure the deal to balance risk and affordability.
Our role is to balance relationships, avoid conflicts of interest, and negotiate terms that work for both sides.
From financial and tax checks to legal and operational risks, we manage a thorough due diligence process to make sure no stone is left unturned.
We will coordinate with solicitors to get the paperwork watertight. This includes Share Purchase Agreements, loan contracts, and updating Articles of Association to reflect the new ownership.
We help you over the finish line. Once the deal is complete, we support you through the transition, ensuring stability, continuity, and a smooth handover.
MBOs typically involve significant finance commitments, as the senior management team is unlikely to have the cash required to buy the business outright. Fortunately, there are lots of options.
Our commitment is to share knowledge about the most important aspects of big business decisions, including major transactions.
That’s why we’ve put together a completely free guide to Management Buyouts, for both the seller and the team looking to acquire.
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