How we can help

What is a management buyout?

A management buyout, or MBO, is when an existing management team or workforce buy a business from its owners. It can offer the vendor a quicker completion, give MBO teams the opportunity to capitalise on their knowledge of the business and is usually the least disruptive type of succession.

  • We have years of experience structuring finance for management buyouts
  • We understand the 'art of the possible' when it comes to funding options
  • Flexible loans and equity to fit your needs

If an external management team buys into a target company it is known as a management buy-in, or MBI.

It's often an alternative route for experienced managers or management teams to become a majority stakeholder of a business.

  • We understand no deal is the same and tailor our finance to fit it
  • We have a wealth of experience helping new managing directors buy into a business
  • We can support deferred consideration transactions

 

A buy-in management buyout, or BIMBO, is when the existing management team buy a business alongside outside investors, who eventually join them as owners and often sit on the new management team.

This type of transaction is ideal for companies with a strong operational management, but lack leadership with the exit of the selling owner

  • We have experience of structuring finance where there's a mix of internal and external managers
  • We can talk confidentially to companies and management teams about their options 

Vendor-initiated (sometimes vendor-induced) management buyout, also known as a VIMBO, means a business owner wants to sell their company to the current management team. 

It can carry the benefit for the company owner initiating the deal on their terms and getting a quicker realise of cash. 

  • We have experience of structuring VIMBO transactions over £1 million
  • We can help management teams understand their funding options

 

An acquisition is the purchase of one business or company by another company or other business entity. It can be a vehicle to allow enterprises to grow, shrink, and change the nature of the business or competitive position.

  • We have supported a range of small and large scale acquisitions 
  • We can provide flexible loans and equity to support the transaction

An employee buyout, or EBO, is when the employees of a company buy the business from its owners.

It can be a way of preserving jobs and ensuring the future of the company, with an incentivised workforce to take it forward. 

  • We provide flexible loans and equity to support employee buyouts
  • We can help employees understand their funding options

 

Looking to buy a business?

Whether you're a businessowner looking to acquire a competitor, or an entrepreneur looking to buy a business, we offer loans, equity or a mix of both to give you the capital you need.

Ready to sell?

If you're looking to sell, have you considered your management team? We can support both management buy-outs and vendor-initiated management buyouts with bespoke financial packages.

Key information

  • Loans and equity provided
  • Interest is fixed for loan terms and is based on each businesses' individual circumstances
  • When you apply you need to provide a structured business plan explaining how you’ll run the business and repay the finance
  • When writing your plan you might want to consider involving a specialist accountant or corporate finance adviser
  • Financials, statements and forecasts will be required to progress your application

Empowering management teams

Management teams often have the misconception they can't afford to buy out a business owner when the opportunity arises.

However, we can support both management buyouts and buy-ins with loans and/or equity to cover the vast majority of the finance, so you only need to provide a small level of personal investment.

Key information

  • Loans and equity provided
  • Interest is fixed for loan terms and is based on each businesses individual circumstances
  • When you apply you need to provide a structured business plan explaining how you’ll run the business and repay the finance
  • When writing your plan you might want to consider involving a specialist accountant or corporate finance adviser
  • Financials, statements and forecasts will be required to progress your application

Helping businesses like yours

What's next?

Make an initial enquiry through our contact us form and we can start discussing your options.

Contact us