MBO's & MBI's

Management buy-outs are complex transactions requiring very careful project management to ensure that the transaction completes without a detrimental effect on the business.

The mid-market private equity houses still have considerable financial backing available to back quality MBO's, and certain banks are once again willing to support these MBO's. The result is that a good management team of a business with high earnings visibility and a clear strategy is in a very strong position to complete their own MBO.

Whether you are the current owner considering selling your business to your management team, or the management team hoping to buy the business off the current owner, the issues are many.

As the owner,

• How do you give the management team a fair crack at buying the business without ruining your own negotiation position by giving them exclusivity too early?
• How do you prevent division developing between you and the team?
• Are your management team even backable?
• How do they raise the money and how much money could they raise?

As the management team,

• How do you even begin the process of raising enough money to buy the company?  What are the legal consequences?
• What is a good deal with an equity provider?
• How much money are you really likely to make?  How does that work?
• What is actually involved in completing the deal?

For a free, no obligation discussion about the answers to these, and many other, questions please contact us at website@najudd.co.uk or telephone 01908 698760.