Crucial advice to help your management buy-out or buy-in succeed
- Management buy-outs (MBOs) and management buy-ins (MBIs) can be highly effective at rejuvenating a business and rewarding the new management team.
- Successful MBOs and MBIs need careful structuring, appropriate and dependable financing and properly drafted legal documents.
- Our experience and advice can help you avoid potential problems, make beneficial contacts and keep the business running while the MBO or MBI is implemented.
What is a management buy-out and buy-in?
A management buy-out (MBO) and buy-in (MBI) refer to situations in which the management team of a company takes control of the ownership and management of the company. In an MBO, the management team buys out the existing owners, while in an MBI, the management team buys into a company in which it previously had no ownership.
The benefits of a management buy-out and buy-in
Management buy-outs (MBOs) and buy-ins (MBIs) are increasingly common as business owners look to the next generation of management for their exit route, and managers seek to benefit from ownership.
You are probably considering an MBO or MBIs for good reason. A change of leadership can revitalise a stagnant business. Your potential MBO team will already know the business and its clients, may already have contacts with potential financial partners and can often achieve your ambitions more easily than by starting a completely new business. Yet MBOs and MBIs still need careful structuring to succeed.
How Moore Barlow can help
It’s important you have practical advice on aspects such as the true strengths and weaknesses of the business, how the MBO/MBI should be structured, creating a shareholders’ agreement that covers all eventualities and sourcing the most appropriate and reliable finance. Most of all, it’s vital you continue to focus on running the existing business and not be distracted by the buy-in or buy-out.
With extensive experience of supporting MBOs and MBIs, we can help ease the pressure on you, so you can devote the time needed to run the business. In the meantime, we will devise a structure that meets your objectives, avoids potential pitfalls and incorporates the flexibility to help the business grow.
We will advise on the right mix of funding, and you’ll also benefit from our extensive book of contacts to bring in the right funders and other advisers to deliver the deal.
MBOs and MBIs can be richly rewarding for those with vision and ambition. Our expert guidance will help ensure your hopes and hard work pay off.
We have offices in Southampton, London, Lymington, Woking, Guildford and Richmond. Contact us for specialist advice.
