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Management Buyout (MBO)
A Management Buy-Out ("MBO") is when a business is sold to some or all the existing management team. It is often the best way to grow and develope the business. We can help with all aspects of the management buyout process.
During an MBO our role is pivotal, we work alongside you in all aspects of the MBO process (from initial negotiation of the deal, through to business planning, sourcing finance and legal completion). We will project manage the whole transaction to a successful conclusion, leaving you to concentrate on running the business.
Why carry out a MBO:
There are a few reasons why a MBO may become an opportunity worth taking.
- It may be that the current owners may wish to retire or step back in some way.
- The business itself may be having financial problems and maybe the owners wish to sell in order to improve cashflows.
- It may be that certain management members may not consider the business to be core to them, therefore new management may be able to move the business forward alot quick and effectively.
As the existing management have inside knowledge of the business they are in the best position to take the business forward. In many cases, selling to the management is the preferred option to the existing owner, rather than selling to a competitor.
An MBO offers ambitious managers an opportunity to run their own business and benefit from their own efforts through increased remuneration and a valuable asset to sell on in the future. The main problems for the MBO team will be securing the necessary finance, both for the acquisition and future working capital.
At Sterling Capital Reserve Ltd, our corporate finance advisors have extensive experienced in accountancy, corporate finance and banking. In all transactions we work alongside our Business finance brokerage, which enables us to access many different sources of finance to ensure that the most appropriate funders are approached.
It is a myth that Management Buyouts have to be multi million pound businesses, before they can obtain affordable professional advice. At Sterling Capital Reserve Ltd most of the MBO's we conclude are in respect of businesses in the £500k to £5million turnover sector.
As we are an independant business and not owned by any of the larger accountancy practices, we can undertake MBO's at "sensible fee" rates.
With access to many innovative and aggressive debt finance providers, most of our MBO's have been funded without the need for Venture Capital.
Sterling Capital Reserve Ltd
Sterling House
10 Wheatcroft Business Park
Landmere Lane, Edwalton
Nottingham NG12 4DG
Tel: 0115 984 9800
Fax: 0115 921 5550
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