Management Buy Out
As the current manager or management team, you wish to acquire the shares of the company. This is a distinctive acquisition process with particular characteristics:
- There is an existing (working) relationship between you and the seller.
- In case you wish to involve more managers into the transaction, a new business relationship will arise between the acquirers (MBO-team)
- There is a transformation phase from being employees to become entrepreneurs
- External funding, whether bank finance or equity capital from private equity partners or informal investors, is almost always required.
When promising?
A MBO is most likely to succeed when the incumbent management (team) is one of the key value drivers of the company. In all other instances, the conditions of sale of the shareholder will determine whether a MBO might be worth investigating.
Start entrepreneurship
In addition to the acquisition process, becoming an entrepreneur will require many fiscal and legal steps. Moreover a suitable funding structure will need to be secured as well. We can assist you in determining the most suitable structure and also support your negotiations with the financers you selected.
Test of competence
In advising the MBO team we arrange the process in such a way that while we step through all the phases the team formation is continuously being supported. The process will thus become a first test of competence. This approach not only increases the possibility of a successful transaction, but even more so, the chances on a flourishing company in future.
