Management Buy Outs / Buy Ins Unlocking Capital Value

For major stakeholders looking to exit a business or extract a significant amount of capital value, Management Buy-Outs (MBOs) and Management Buy-Ins (MBIs) represent compelling options. At Beavis Morgan, we understand the intricacies of these transactions and offer our expertise to help you navigate the complexities involved.

An MBO provides an attractive succession plan that ensures continuity of management. It also eliminates the need to share confidential and commercial information with industry competitors. This option is particularly appealing to retiring owners who can benefit from a clear track record of sustained normalised earnings and a capable, motivated management team with a vision for the business’s future growth and direction.

MBIs may be more suitable when the existing management team lacks the requisite experience or quality. Typically, an MBI introduces a new chief executive, though it can entail an entirely new team. While MBIs share similarities with MBOs in many aspects, incoming teams may not possess the same depth of business knowledge. However, they are expected to bring relevant industry knowledge, experience, and a clear vision for the business’s future.

Both MBOs and MBIs involve complex transactions, often requiring private equity finance and debt. Beavis Morgan excels in providing professional project management services to ensure a seamless and minimally disruptive completion of these transactions. We assist at each stage of the process, allowing the business to continue its operations with minimal interruption.

• Feasibility Assessment: Evaluating the viability of an MBO/MBI for your business.
• Business Valuation: Determining the value of the business to be acquired, assessing financial structures, deal structure, and requisite taxation planning.
• Business Plan Development: Assisting in crafting a comprehensive business plan and financial projections.
• Finance Procurement: Assisting in securing the necessary financing for the transaction.
• Negotiation Support: Providing negotiation expertise for both vendors and financial backers.
• Financial Due Diligence: Conducting due diligence on the target business to assess its financial health.
• Project Management: Overseeing the entire transaction process, from inception to completion.
• Taxation and Investment Advice: Assisting exiting stakeholders with taxation and investment advice concerning the disposal proceeds.