As a manager, you’ve already played an instrumental role in a company’s success. Now might be the time to gain an even greater say in how it’s run. If the current owner is keen to sell, a management buyout (MBO) can give you more control and increased rewards. You’re in the perfect position to take the business to the next stage of its growth. You know the company’s strengths and weaknesses, and have likely identified where improvements can be made.
The MBO process itself can be complicated however, and it’s certainly not without its challenges. The decisions you make now will have a lasting effect on the future of the business. From the sale price to the finance arrangements, mistakes can be extremely costly. Mishandling the negotiations can lead to the MBO process stalling or breaking down completely.
This site is designed to give you an insight into MBOs. You’ll learn about the factors that are crucial if your management buyout is to succeed. You’ll find information about funding, success stories and guidance on what to look for in an MBO adviser. If you need any more support, please get in touch with Park Capital to discuss how we can help
The MBO process
In most cases, you’ll form a new company and then acquire all, or most, of the shares of the existing company. Every management buyout will have its own unique requirements. However, the process for an MBO usually follows a similar journey:
Undertaking a review of the existing company, to decide whether an MBO is possible
Agreeing a price and negotiating terms with the current owner
Refining your business plan and strategy to make it more attractive to investors and other funders
Applying for finance and agreeing terms
Completing all the necessary legal-work
Working with the vendor on the handover
Finding an MBO specialist
An MBO specialist can make the process much easier, and greatly increase your chances of a successful outcome. At Park Capital, we take on a small number of MBOs each year. Each case is dealt with by a senior advisor, with a strong background in corporate finance. We can offer you a fair and transparent pricing structure, jargon-free communications and access to our network of MBO funding organisations. We’ll offer you as much help as you need, whether it’s just advice on funding, or full project management of the MBO process. Please contact us to find out more.