Management buyouts (MBOs) are often seen as an ideal solution to succession planning issues and our advisers have worked on numerous deals across many sectors.
MBOs enable the owner to pass control of the business to a management team he or she trusts and has worked with over many years, rather than selling to competitor in a trade sale.
It is frequently quicker to sell to management because the due diligence process is faster and there is no need to market the company for sale.
In addition, less risk is involved and management need less warranty and interest cover due to their close working knowledge of the business.
From the management team’s perspective, the prospect of acquiring the business often represents an exciting opportunity to determine their own future.
Funding can be a significant hurdle and our advisers can negotiate with private equity investors interested in backing management by taking an equity stake.
We also advise on relatively rare management buy-ins, which involve an external management team taking control of the business, usually backed by private equity funding.