A management buy-out (MBO) occurs when a business owner sells the business to members of the existing management team. A management buy-in (MBI) occurs when a business is sold to an outside management team.
For many business owners, this process is a natural part of their succession plan. MBO’s is usually an exciting, once-in-a-lifetime opportunity for managers to own a significant stake in their business. MBI’s is the concept of merging a proven management team with a business that has yet to realise its full potential or is seeking an injection of capital and expertise also has many attractions.
Capital Edge can provide the following services:
- Review of target business including risk identification and mitigation
- Transaction structure design for management and investors
- Preparation of an information memorandum (IM) to solicit interest from debt and equity providers
- Negotiation with current owners
- Management of completion and settlement.