Corporate Finance Services
Management Buy Outs
An MBO occurs when the existing management of business acquires all or part of the shares from the existing shareholders. If external management acquire the shares the term MBI is used. These types of acquisition present management with a number of challenges and professional advice should be sought before any approach to the existing shareholders is made.
We offer a full support role to management teams which may include the following advice / services during the transaction:
- Initial advice: we provide support at the initial planning stage of your proposal
- Tax planning: we can advise on tax-efficient structures for your investment in the target as well as tax issues that may affect the Vendor so that any offer is structured as attractively as possible. The initial tax planning is very important as it will affect your tax position when you exit the business
- Business planning: we can help you plan in more detail how the business will look following the transaction and how the new management team will function both for your own benefit and for funders who will need this information to assess your proposal
- Financial modeling: we can assist in the development of financial models to ascertain the funding requirement which will assist in fund raising
- The approach: once we have indicative financial support for your proposal, we can support initial negotiations to ensure the Vendor is comfortable you can deliver your bid and that under the circumstances an MBO/MBI represents an attractive form of exit
- Heads of terms: we can document the agreed terms so that both sides are clear on the deal subject to fund raising and due diligence and can agree exclusivity arrangements which include a timeframe to complete the deal
- Closing the deal: management of the funder / your due diligence negotiation of the acquisition agreement / funder documentation and working with your lawyers and other advisers until the deal is completed;
- Post deal support: dealing with post deal issues such as completion accounts, calculation of deferred consideration as well as monitoring progress and providing continued support.
An MBO / MBI transaction represents a significant challenge for the acquiring management. As part of your team, we can provide the necessary assistance to give you the best chance of a successful outcome.
To contact us:
Gilbert Finance & Accounting LLP
Westbourne House,
99 Lidgett Lane,
Garforth,
Leeds
LS25 1LJ
Telephone Numbers & Email Addresses
Telephone: 0800 496 0195
Fax: 0113 286 4734
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Jay Gilbert
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07771 815066
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Martin Bailey-Stead
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07734 774240
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Chris Hutton
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07827 927619
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Scott Gilbert
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07771 974137
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A management buy out (MBO) is defined as a form of acquisition where a company’s existing managers acquire a large part or all of the company. There are many matters to arrange in order to run a successful management buy out (MBO) both legal and practical. Should you wish to discuss management buy outs (MBO’s) please call us at any time. For more detail on how we can assist you with management buy outs (MBO’s) please click here.
