Once in a lifetime opportunity
The chance to carry out a management buy-out (“MBO”) is often a once in a lifetime opportunity for a management team to make a substantial capital gain. The skill is to recognise the opportunity before it becomes widely apparent and to retain specialist advice from the outset so as to be in a strong position to negotiate the best acquisition terms and funding package. The opportunity for an MBO may arise when:
- A part of a business is no longer seen as a core activity in the owner’s future strategy;
- A business is in financial difficulties and needs to sell a division to raise cash;
- A financial backer who has owned a business for a while needs to reinvest in other assets; or
- The owner of a family business plans full or partial retirement.
Corbett Keeling has developed a tried and tested process to guide the MBO team from initial discussions with the current owner of the business through to completion.
Vital to the success of any buy-out is obtaining the very best access to funding. Corbett Keeling, therefore, devotes considerable resource to building and maintaining relationships with equity and debt providers and has an exceptional track record in matching management teams with suitable backers.