1. Before you get attached to the idea of a MBO, you need to be asking yourself:
2. You will need a business plan to secure finance for an MBO, with a robust set of financial forecasts. You will be glad of a good business plan once the buyout completes as you will have less time for strategising, and plenty of targets to meet.
3. Few things are as awkward as negotiating with the current business owner. Your corporate finance advisor will keep discussions running smoothly. They can push back and deliver bad news for you, so things don’t get too difficult between you, plus, an adviser will help structure the deal. This includes setting out:
4. Leave plenty of time to raise finance for a MBO. You need to find a good deal rather than going with the first person to wave a offer of finance around. Whether it’s a venture capital firm or a debt provider, you need to remember they will be a long-term partner.
5. There are likely to be parts of the company unfamiliar to you, so it’s crucial to get due diligence completed by a professional. This can be a comfort to you and your financiers, as it will raise any potential issues before you complete the deal.
With a solid agreement and funding in place you will be able to close the deal, and then it’s time to knuckle down and run your own business.
Our award-winning Corporate Finance team are here to guide and advise you on the prospects of an MBO, from both the buyer or seller’s perspective. Our team have recently completed MBO’s for the likes of ParkVia (formerly ParkCloud).
Contact our team today on 0161 832 6221 or email email@example.com to arrange a meeting.