MBOs and MBIs

Management buy outs (MBO’s) offer most management teams a once in a life time opportunity to own their own business and this option should always be considered by entrepreneurs looking to sell their business.  However, actually realising the management team are capable of buying a business can, in itself, be a long drawn out process.

The parties involved in management buy outs are diverse and would include the vendors, bank, solicitors, accountants, possibly venture capitalists, employees, pension schemes, customers and suppliers, to name but a few.

HSKS Greenhalgh Corporate Finance have worked on a number of MBO’s and are used to working through every stage of the transaction, providing strong commercial advice that enables the management to continue to successfully run the business whilst the buy out process is being undertaken.

We can assist in:

  • Assessing the proposition initially
  • Formally valuing the business
  • Formulating a business plan and a funding model
  • Discussing the funding model and business plan with potential funders and help deliver a funding package
  • Negotiating the detail with the vendors
  • Working in tandem with the eventual funders and the lawyers to ensure a smooth process
  • Generally project managing the whole process

Management Buy Ins

Management buy ins (MBI’s) are a little less common and do not always receive the same support from funders as an MBO but are possible with positive corporate finance advice.  The main difference is that the MBI team normally have to be found, whereas with an MBO the team are already in place.

However, as is also the case with MBO’s, the emphasis should always be to ensure that you obtain the correct professional advice at the very start of the process.

If you are considering a MBO or MBI, conatct HSKS Greenhalgh Corporate Finance for advice and support throughout every stage of the transaction.

Services expert: 
Managing Director and Director - HSKS Greenhalgh Corporate Finance
Director - Taxation Services