Management Buy-outs Buy-ins
A MBO offers an attractive succession plan, providing continuity of management and avoiding the requirement to provide confidential and commercial information to competitors in the industry. A MBO is often an appealing option for retiring owners, provided there is a clear track record of sustained normalised earnings and a strong, motivated management team with a vision for the future direction and growth of the business.
A MBI may be more appropriate if the existing management team lacks the depth of experience and quality. Typically a MBI introduces a new chief executive, but it can be a completely new team. A MBI is similar to a MBO in all other aspects, although an incoming team will not have the depth of knowledge of the business as a MBO team. However, a MBI team would be expected to have relevant industry knowledge and experience and a clear vision for the future of the business.
Both MBOs and MBIs are complex transactions and usually involve private equity finance and debt. These transactions need professional project management which Beavis Morgan is well placed to provide, so that the transaction is completed as smoothly as possible and minimising any adverse effects on the business.
Beavis Morgan can assist you with each stage of the process, enabling the business to continue running with minimum disruption.