Management Buy-in (MBI)

A management buy-in or MBI is similar to an MBO, albeit instead of the existing management of a business buying it from its owners, the MBI candidate buys it.

Quite often an MBI can then develop into a BIMBO, which means Buy-in Management Buy-out. This is where the MBI candidate involves some of the existing management to participate in the transaction with them.

MBIs typically arise for a number of reasons including where the owners of the business are looking to retire due to age or changes in personal circumstances; or where the business is part of a larger group that sees the business as no longer core to its operations;

If you are a senior executive with managing director or Board level experience and you are looking for an opportunity to buy a business then please get in touch with our team to have a confidential discussion on the feasibility of carrying out an MBI.

Often business owners are not aware that an MBI is a real possibility.

We can offer advice and assistance throughout the MBO process which includes:

Identifying suitable acquisition Targets
Based on detailed discussions with you we can use our experience to carry out research on numerous databases and through relationships with other advisers, intermediaries and knowledge of markets.

Approach potential Targets on your behalf
This is done confidentiality to businesses identified by us but cleared with you first.

Feasibility exercise
Carrying out a feasibility exercise on the business to establish an indicative value of the business and the ability to raise appropriate finance to acquire the business.

Negotiation
We lead negotiating with the owners to agree on an appropriate price and deal structure. This removes any potential tension between the owners, and you as a buyer.

Forecasting and planning
Once an indicative deal price is agreed upon, we assist by preparing detailed forecasts and business plans to share with appropriate finance providers. This could include bank loans, private equity, invoice finance and asset-based lending as well as exploring the option of the sellers deferring some of their proceeds or rolling forward some retained equity.

Deal Structure
We negotiate with the various finance providers and seek to optimise the deal structure to suit the individual circumstances – every deal is different!

Specialist tax advisory team
Introduce our specialist tax advisory team where appropriate to ensure the deal structure is optimised.

Legal Advice
Introduce and liaise with suitable legal advisers to complete the transaction.

Project Management
Project manage the MBI process throughout and negotiate with all parties, providing commercial input to the legal process, as required.

Continued Support
Offer post-completion assistance where necessary and introduce our accounts team for ongoing assistance where appropriate.