MBI (Management Buy In) Funding Benefits

Are you currently in an employed role but have considered running your own business?

It is easier to acquire an existing business rather than start a new business from scratchand a management buy-in could be your ideal solution.

A funder will support you financially for Management Buy-In for a number of years but once the finance is repaid you will have gained an equity value in your own business for a small investment.

With a small personal investment combined with MBI Finance you could stand to greatly increase your personal wealth and have job security.

MBI Process
  • Business valued at £2.5m at the transaction date.
  • MBI are required to invest £250k
  • The remainder of the deal is funded by debt of £3.8m and deferred consideration of £1m.
  • As the value of the business increases under new ownership and the level of debt is repaid, the value owned by the MBI increases substantially.
  • After 5 years the business in the illustration is worth £7.5m, all the debt is repaid and 100% of the business is owned by the MBI Team.

 

MBI Funding is sourced by Sterling Capital Reserve Ltd, a professional Corporate and Commercial Finance practice that has been sourcing funds for MBI’s and MBO’s for over 12 years.  We work in partnership with our clients to provide a range of innovative and competitive funding packages for management buy outs.