Management Buy-Out (MBO)

Management buyouts (MBOs) can offer exciting opportunities to management teams but are typically complex, time-consuming and risky transactions. Mazars Deal Advisory has significant experience of working on such transactions, advising and supporting management teams through the buyout minefield.

Managing a business whilst also trying to acquire it can present some obvious and significant challenges; there are many factors that need to be considered including finance raising, deal structuring, deal management and tax planning to name a few. Having a trusted advisor can provide management with the confidence to make the difficult steps to business ownership.

Our approach

Our team helps manage the process from inception to conclusion and advises you on:

  • The initial assessment of a potential transaction to assess whether it is feasible and in the best interests of management;
  • Tactics for approaching the vendor – it’s crucial to get this right to ensure that management are taken seriously;
  • Appropriate value and structure;
  • Negotiating terms with the vendor;
  • Preparing business and financial plans including detailed financial projections;
  • Securing funding that fits the deal and which meets the objectives of the management team - we have strong relationships with the UK’s leading equity and debt providers and are well placed to find the optimum funding solution; and
  • Project managing the process to completion including coordinating due diligence and legals.

There can be many variations on an MBO including Management Buy Ins (MBIs) which are rarer and more risky and Vendor Initiated MBO (VIMBOs).

For owners who want to bring in a new management team or experienced managers looking to acquire equity in a business (MBIs), we can help identify acquisition targets, negotiate deals and raise the necessary equity and debt funding.

VIMBOs can often bridge the gap between a vendors requirements and the availability of funding. They can be used to facilitate a full or partial exit of a business for a business owner.

Return back to our main M&A page for more of our advisory services offering.

Our team