Financing a management buy out (or buy in)

We often help and support management teams to take a share in a business. A management buy out (MBO) or buy in (MBI) can be a very effective way to continue a business’ growth.

You might be an owner looking to sell your business to your management team, or a member of an existing management team that sees an opportunity. Financing a management buy out and deciding on an effective deal structure can be a challenge. It can be time-consuming, especially if the team doesn’t have experience in this area, taking focus away from running the business. However, the right information and experienced support can help.

The right support and experience

Our focus is to understand the business, the management team and the objectives so that we can provide a range of options. MBOs and MBIs can be complicated. There are multiple parties and negotiations between the present owner(s), management and potential sources of investment. However, this also presents an opportunity to structure a transaction that readies the business for its next phase of growth.

Assessing your options, presenting the opportunity

Your Heligan Partners team will lead the negotiations and explain the options. So you will have a complete picture of what’s involved. Even if you haven’t been involved in a process before, you will appreciate that financing a management buy out requires a clear picture of the value and opportunity. We’ll need to present a business plan and financial forecasts.

How well the business is presented will have an impact on the type (and cost) of funds available to enable the transaction. We will advise on the business plan and help to make sure the opportunity is clear and attractive to investors. We find that aligning the interests of the management team, current owners and investors with those of the business, delivers the best results.

If you want to arrange a confidential, no-obligation conversation about a management buy out or buy in, contact Heligan Partners today.