Management Buy-out (MBO)

We have extensive experience in assisting management teams to take ownership of the business they work for through a management buy-out (MBO).

MBOs typically arise for a number of reasons such as: when the owners of the business are looking to retire due to age or changes in personal circumstances; where the business is part of a larger group that sees the business as no longer core to its operations; or where a minority shareholder is looking to acquire the shares of the major shareholder.

If you are a member of the senior management team or a minority shareholder and you believe there is an opportunity to potentially buy the business you are working for then please get in touch with our team to have a confidential discussion on the feasibility of carrying out an MBO.

Often both owners and potential MBO teams are not aware that an MBO is a real possibility.

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

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 current employees.

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.

Negotiation
We negotiate with the various finance providers and seek to optimise the deal structure to suit 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 managing the MBO process throughout and negotiating 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.

An MBO is a complex transaction, in our experience if you are to succeed you need the best advisors available working for you.

In selecting Patrick Abel we had someone on the team who has a proven track record in completing corporate finance deals over a number of years.

Patrick had a positive effect on the process from Day 1. Starting with his interaction with the Vendor’s advisors, his help and advice in structuring the deal and his contacts with several funders.

During the process, Patrick was on hand to facilitate the progression of the deal through to completion and offer help and advice in a way that made the process understandable.

I will use Patrick for any future Corporate Finance requirements the business may have, and I would recommend him as a consummate professional with a great can-do attitude.