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
Find out more about how we can help and finance a management buyout.
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
- For further support and guidance on employee ownership visit Cwmpas and their dedicated resource at Employee Ownership Wales
