Management Buy-outs

MBOs can be high-risk investments with high debt levels so it is essential that your management team is properly advised when structuring the deal.

Management buy outs and buy ins can be an effective way to facilitate a business owner’s exit. For the purchaser, MBOs require less onerous due diligence than other forms of acquisition because the management team already knows the company. The purchaser also stands to benefit from staff loyalty and continuity of operations during and after the acquisition transaction process.

Evidence shows that after an MBO, companies grow more rapidly than their peers. They become more profitable and management reaps the rewards of ownership.

However, MBOs are not without risk. They can involve high debt levels and present significant challenges for both vendor and purchaser, not least from a valuation and financing perspective.

Forvis Mazars has extensive experience advising both buy side and sell side clients. Working with our corporate finance team will ensure that your MBO or MBI is executed successfully.

Our services include:

Feasibility assessment
Assistance with your business plan
Identifying funding requirements and sourcing finance
Structuring your deal
Setting the price
Owner manager negotiations