A management buy-out (MBO) is a type of take-over whereby a company or business unit is bought out by the present management. This type of sale requires quite some skills. The relationship between purchaser(s) and the selling shareholder must remain well during a longer period of time. If this is not successful, we often notice the wrong-going of relationships as the cause of the intended transaction not going through. Often, this results in considerable damage. The managers that had wanted to take over have lost their ambitions – and in many cases, a lot of time and money as well. The shareholders who had wanted to arrange for their succession in this way, have been deprived of an illusion and will have to start anew. And in many cases the labour relationship with the most senior manager who was considering the MBO ends as well.
Those special aspects make an MBO more complex than a ‘normal’ purchase or sale of an enterprise. Yet, we are then still not even mentioning more complex transaction financing involved in such deals either. All the more reasons to have yourself advised properly.
We can help you with the business plan, the valuation, the financing and/or with the coordination of the deal. We have acquired experience in both several successful MBOs and MBIs, and in various non-successful attempts. Therefore we are well-capable to guide you through such course.
If you orient on a management buy-out, as seller or intended shareholder, we will be happy to make time for an orienting introductory meeting.