Management Buy-Outs/Buy-Ins
Experts in both vendor backed as well as bank and private equity backed management buy-outs (MBOs) and management buy-ins (MBIs).
Benefits
Structured correctly, MBOs/MBIs can be an excellent way to help you pass the business on to the management team.
An MBO/MBI allows the incumbent management team to take an equity stake in the business. If the management team share the same vision as the current shareholders and both parties’ aspirations are aligned, a transaction can be completed with relative ease.
CKS Finance advise on deal structure, valuation, feasibility and the sources of funding along with project managing the process from start to finish. We take a hands-on approach to each engagement.
Funding
Funding can be sourced from vendors, banks, private equity firms, family offices, alternative lenders, or from the management team’s personal wealth. We are also well placed to advise clients looking to refinance existing debt facilities or raise new debt funding lines. We have long-standing and established relationships with all types of funders and we can use our experience to negotiate, achieving competitive pricing and the very best terms.
MBO/MBI transactions typically allow the vendor to extract a significant proportion of value today, whilst maintaining a minority stake in the “newco” structure.
Key Considerations
- Management buy-outs/ins process
- Valuation
- Transaction structure
- Negotiation of working capital requirements
Recent Management Deals
