Our Corporate Finance team can negotiate and manage the deal from the early stages of the process through to completion ensuring the best possible outcome from the strategic and transactional objectives set. Our highly experienced team will develop structures to help meet the market requirements and aims to make every part of the corporate finance process understandable and straightforward in the changing role from manager to business owner.
- Management Buy-Ins involve the control of the business passing to an outside management team, typically where the business is under-performing due to the absence of suitable expertise or where business growth requires a more knowledgeable management team.
- Management Buy-Outs occur when a business is sold to the existing management. This often occurs when large companies seek to dispose of parts of the business or an owner-manager is seeking to retire. The initial step in evaluating an MBO proposal typically involves an appraisal of the management team themselves. The typical characteristics of a MBO proposal are strong cash flows, relatively low debt (prior to the management buy out), good quality assets and the availability of management equity. Once it has been established that the MBO is actually achievable the next stage is to ascertain a value of the company to be bought out and develop a financial structure appropriate to the asset base of the company and income profile of the company (i.e. historic and future earnings stream).
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