Management buy-outs often represent a once in a lifetime opportunity for a management team. Although the process is often complex and time consuming and the period between identifying the opportunity and the completion itself will be several months, they provide an ideal opportunity for management teams to own their own business and enjoy financial rewards far in excess of a standard salary.
RSM Tenon assists MBO teams at every stage of the process, providing sound commercial advice and support to enable the management team to focus on running the business and delivering its ongoing performance. The management team will need to deal with many parties including the vendor, solicitors, banks, venture capitalists, accountants and perhaps also employees, pension schemes, trade unions, customers and suppliers but as we have advised hundreds of management teams we can guide you through the process and help you avoid potentially costly pitfalls.
Specifically we will:
- Assess the viability of the proposition
- Value the business to be acquired
- Assist in devising a strategy and a business plan
- Introduce financial backers appropriate for the transaction
- Negotiate with the vendors and financial backers
- Work closely with your lawyers
- Project manage the transaction throughout
Management Buy-Ins
Management buy-in (MBI) opportunities are often a more exacting challenge than MBOs. Identifying the right target can take some time and funders' appetite for such deals are sometimes not as strong. Both management buy-outs and management buy-ins are complex transactions that need professional project management to ensure that the transaction is completely smoothly, without any negative effect on the business. Our corporate finance specialists assist you at every stage of the process and offer you sound commercial advice and support.
We can provide a comprehensive service including:
- Finding a target company (if necessary)
- Advising on feasibility as small MBIs can be difficult to fund
- Preparing a business plan
- Sourcing the finance
- Negotiating the deal
Why would you need our support?
As the MBO or MBI team:
- You have the opportunity to take ownership of a business and need professional advice and support with all of the steps to completion of the deal
- You want a professional team to manage and support you through all negotiations and liaise with the numerous other parties as appropriate or necessary
As the owner:
- You need advice and support in preparing the business for sale
- You need to know whether the management team has the necessary expertise to complete a deal
- You want to ensure that you achieve an appropriate value for your business