Management Buy-Ins
A Management Buy-In (MBI) is the acquisition of a business from its current owner by external management. Management buy-in candidates have usually had previous experience at successfully running businesses and are looking for a new opportunity.
The key to the successful outcome of the MBI is the strength and quality of the management team, which is a major factor in raising the required funds to complete the transaction.
Funding the MBI is typically a combination of equity investment from the management team combined with bank debt and deferred consideration. The input from the management team, although often relatively small in comparison to the overall deal size, is important as it shows the external lenders your commitment to the transaction. Venture capital is a further funding option particularly where there is a funding gap after considering the more typical sources of funding.
We can advise on all aspects of the transaction relieving the pressure on the management team.
Our services typically include:
- Identifying and contacting potential target businesses following detailed research based on your acquisition criteria and using extensive UK, European and Global company databases
- Performing a business valuation of the business in order to formulate an offer
- Negotiating the terms and structure of the transaction taking into consideration funding and other financial issues
- Preparing a detailed business plan and financial forecasts to assist in the raising of appropriate debt and/or venture capital funds
- Leading discussions and negotiations with potential funders to the transaction
- Performing appropriate financial and taxation due diligence
- Working with your solicitors to finalise the sale and purchase agreement and to complete the transaction within the required timescale
