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Are You Considering a Management Buy Out?

Not A Trail For The Faint Of Heart.


You are a successful manager.  You’ve worked hard and run a successful business.  You’re good at finding customers, managing the staff, and getting the most out of suppliers.  In short, you know how to run the business and make good profits, but you’re making the shareholders rich and not yourself.

Now the chance has come to buy the business you run.  You probably haven’t bought a business before – most people haven’t.  If you are seriously considering a management buyout this is not the time to learn by trial and error.  You need to get help from an adviser with hands-on experience.  An MBO can go wrong, and the consequences will be drastic, perhaps even the loss of your family home.

Experienced advisers will help steer you through the potential pitfalls.   Look for someone who can help you:

  • Realistically assess the project, and help you decide whether to go ahead or not;
  • Help develop a business plan that will explain your ideas to investors;
  • Advise on a fair price;
  • Introduce you to other professional advisers;
  • Find sources of bank, equity, and asset funding; and provide advice on a financial structure;
  • Make sure you end up with a fair share of the equity, and are only asked to assume a reasonable level of personal risk;
  • Project manage the deal so that you can continue to run the business.

So what is the most important factor when deciding if an MBO is right for you?   In a nutshell, you should believe that you can run the business better than the existing shareholders.  If you need to raise equity finance from a third-party you must offer the prospect of healthy financial gain.


If you are interested in finding out more about these and other issues relating to a management buyout one of our business sale and purchase experts would be delighted to talk to you in complete confidentiality. Click CONTACT ME to book an initial phone conversation or call us on 01604 432964.

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