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Corporate Finance

Management Buyout (MBO)

We specialise in guiding business owners through successful management buyouts. Get expert financial advice and support for your MBO journey.

Empowering Your Business Future

We understand that navigating the complexities of business transitions such as an MBO can be daunting. That’s why we are here to guide you through the process, providing expert advice and support to ensure your MBO is a success.

Buying a company through a management buyout (MBO) is the first leap into business ownership for many people. Whilst immensely rewarding, becoming a business owner can bring new challenges and concerns, and there will be obstacles to overcome.

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What is an MBO?

A Management Buy Out, commonly referred to as an MBO, is a strategic business move where the management team of a company acquires ownership from the current owners. This process allows for a smooth transition of leadership, continuity of operations, and often leads to increased employee morale and performance.

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Why Choose an MBO?

MBOs offer a range of advantages for both the management team and the business as a whole:

Ownership Transition

An MBO provides a structured way for the current management team to take control of the business, aligning their interests with the long-term success of the company.

Operational Continuity

As part of the process the skills and attributes of the management team are considered, and it may also provide the opportunity for new parties to be brought in to complement the management team.

Employee Retention

Employees are more likely to stay with the company when familiar faces continue to lead, fostering a sense of security and stability.

Business Growth

MBOs often inject fresh enthusiasm and ideas into the business, driving growth and innovation.

Potential Challenges of an MBO

Challenges can arise during the MBO process. One of the primary challenges is securing the necessary financing for the buyout, which may involve taking on debt or finding external investors. The negotiation process with current owners can also be complex, requiring careful consideration of valuation and deal terms. Additionally, legal and regulatory requirements can add complexity to the process. Navigating these challenges successfully requires expert guidance and meticulous planning.

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How can we help?

Our specialist Corporate Finance team can help you through the process with confidential advice on all aspects of your MBO process such as:

Helping you with your business plan
Introducing you to lenders
Valuing the business and facilitating the deal
Carrying out due diligence
Managing and negotiating the purchase process
Advising on the complex legal, accounting, tax and banking requirements
Implementing and completing the process
Providing ongoing support and advice, from running your payroll to completing your statutory accounts

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Our Approach

Our approach to MBOs is centred on collaboration, expertise, and transparency. We follow a structured methodology, involving you every step of the way:

Consultation

We begin with a thorough consultation to understand your business, goals, and challenges.

Tailored Strategy

Based on our assessment, we tailor a unique MBO strategy for your business.

Implementation

We will then work closely with you and the other parties involved to carry out the MBO. We will guide you through the process keeping you informed every step of the way.

Post-MBO Support:

We continue to support you after the MBO is complete, ensuring a successful transition.

Frequently Asked Questions (FAQ’s)

How long does the typical MBO process take?

The duration of an MBO can vary depending on the complexity of the transaction and legal requirements. On average, it can take anywhere from 6 to 12 months to complete.

What are the financial requirements for an MBO?

The financial requirements for an MBO vary based on the size and value of the business. Our MBO specialists will help you assess the financial aspects during the consultation.

Will employees be affected by the MBO?

In most cases, employees will not be negatively impacted by an MBO. In fact, it often leads to increased job security and opportunities for growth within the company.

Are there tax implications associated with an MBO?

Yes, there can be tax implications, which is why we work closely with our tax team to minimise tax liabilities during the MBO process.

What makes Scrutton Bland stand out among MBO consultants?

We stand out because of our extensive experience and personal approach. We have a dedicated team, and a proven track record of successful MBOs and are committed to your success, providing comprehensive support at every stage of the process.