MBI Funding

Most MBI teams do not pursue a Management Buy In because they perceive they can’t access sufficient finance to meet the asking price of the business.

There are many ways to put the funding together for a MBI, let’s look at the most common sources of finance:

Equity Management Equity
Business Angels
Venture Capital
  Mezzanine Finance
 
Debt Cash Flow Loan
Crowd Funding
Invoice Discounting
Asset Finance
Commercial Mortgage

Vendor Assisted


Deferred Consideration

Earn Out

TOTAL CONSIDERATION


There is no “normal” blend of the above funding sources to comprise a deal, but by and large they will comprise equity, debt and vendor assisted funding in one form or another.  The precise quantities of each will be totally dependent upon the unique circumstances attributable to each deal.