Management buy-outs (MBOs) often represent a once in a lifetime opportunity for a management team. Although the process is often complex and time consuming and the period between identifying the opportunity and completion can take several months, they provide an ideal opportunity for management teams to own their own business and enjoy financial rewards far in excess of those usually gained.
McBrides has assisted many management teams to acquire the businesses they have worked hard to build. And we have first hand experience of achieving as a “mere” employee our own MBO, which was completed in just 14 days in 2010.
Our advice always starts with an initial feasibility study to assess whether the opportunity is likely to succeed.
Fundamental to the success of any MBO is to ensure that the offer for the business is correctly priced and the most appropriate forms of finance obtained. We ensure that all aspects of this seemingly complex and daunting process are managed in a way that is minimally intrusive to the daily workings of the business executives.
Management buy-in (MBI) opportunities where a management team seek a third party business to acquire and operate, are often an even more exacting challenge than MBOs. Identifying the right target can take some time and funders’ appetites for such deals are sometimes not as strong as for MBOs.
We can provide a comprehensive service to include finding a target company (if necessary); advising on feasibility; preparing your business plan; sourcing the finance and negotiating the deal.
Essentially, both management buy-outs and management buy-ins are complex transactions that need professional project management to ensure that the transaction is completed smoothly and without any negative effect on the day to day running business.