A management buy-out occurs where the management team of a business acquire that business from its owner.
For vendors, the management buy-out can sometimes represent the most viable exit route.
Our service
The buy-out is often relatively time consuming, complex in nature and there can be a number of unexpected developments as progress is made towards completion. It is therefore key to appoint corporate finance advisers who can lead you through and shoulder the burden of each stage of the transaction.
Typically we will lead all stages of the buy-out, including:
- Establishing feasibility of the buy-out, so that any offer put forward is sufficiently attractive from the vendor’s perspective, realistically priced, structured and fundable.
- Negotiating the main terms of the transaction with the vendor including price and structure
- Developing the business plan and financial forecasts in conjunction with the buy-out team for submission to potential funders.
- Leading discussions and negotiations with potential funders so that the most appropriate funding offers are selected.
- Project managing the transaction to completion once the preferred funder(s) have been chosen.
Our input is key at the feasibility stage. We see many instances where vendors and buy-out teams spend considerable time agreeing a transaction before we get involved, where the price or structure cannot be funded.