MBI - Management Buy In

A Management Buy-In ("MBI") is when a business is bought by a new management teamor individual previously unconnected to the business.

In many cases, selling to a MBI team is the preferred option to the existing owner, rather than selling “into the trade” for a number of reasons:

  • Limited number of trade purchasers
  • Unwilling to disclose sensitive information to competitors for a deal that may not complete.
  • MBI team is less likely to make wholesalechanges to the business. Often an emotive issue for the vendor.

In most cases, a Manangement Buy In will attain less consideration than a conventional trade sale, but many owners will accept this discount if some of the above factors are present.
So as a potential MBI team or MBI individual, you now find yourself with a “once in a lifetime” opportunity to acquire a business. Often at less than market value – What next ? – CONTACT US

During a Manangement Buy In, our role is pivotal, we work alongside you to in all aspects of the MBI process from start to finish, which will incorporate the following:

  • Initial negotiation of the consideration with the vendor (or their advisers).
    It is important that we are engaged at this early stage on your behalf, as it establishes your serious intent and should negotiations fall down for any reason, you are distanced from these.
  • Assisting you in the preparation of a comprehensive business plan,  incorporating financial projections to substantiate to potential lenders that this is a credible MBI, and can meet its funding obligations.
  • We then source the finance, often from more than one lender, in order to get the most suitable blend of finance for your MBI.  Every deal is different, therefore every blend is different.  Our funding packages are “tailor made” for your deal, we don’t simply rely on the high street funders.
  • We liaise with your solicitors, the vendor, their solicitors, your funders, their due diligence teams, etc.

We will project manage the whole transaction with you to a successful conclusion.