Management Buy Outs/Ins

In today’s market it is common for companies looking to either dispose parts of the business or where the existing owner/manager is looking for an exit route.  Logically the current senior management is best positioned to take the business forward as they have expert knowledge of the company and its work-force, hence creating a Management Buy Out.

Strategically, they also present a more favourable option to the existing owner than selling to a competitor or closing the business down.

The main problems for the buy-out team will be securing the necessary finance.

MBOs generally require more capital than a start-up or expansion scheme.

Typically Management Buy Ins happen when the business is under-performing due to weak management or lack of suitable expertise or where the business growth demands a more knowledgeable and experienced management team. This can be part of a MBO package.

The MBI enables the business to inject the depth of experience it requires and the new managers share in the future profits they generate.

Management teams are ideal candidates to succeed within their current business.

Management buy out teams are very often financed by a mixture of debt and equity funding and a management team will need input in relation to finding investors, structuring a deal and understanding the nature and regulation of their relationship post acquisition.

At The IBA we will assist both the team as individuals and as a syndicate in addressing all strategic, legal and financial needs and ensuring the best facilities are utilised.

To discuss this service in more depth or to receive more information please contact us