Who are the future owners of the business you work in? Is there an opportunity for you to become one of them through a management buy-out (MBO)?
The business may be privately owned or part of an international company but ownership will change as individuals retire and larger businesses refocus their activities. An MBO presents an opportunity to secure your future wealth and is therefore something you should consider.
Your knowledge of the business is the most important ingredient of an MBO but your experience of the MBO process may be limited. Unsurprisingly planning and advice will increase your chances of delivering a successful deal. What then is key to planning your deal ?
Davidson Webber LLP have considerable expertise and experience in management buy out work and the planning and structuring required in the early stages of the MBO process to make the MBO a success. We are able to work closely with your nominated accountants and financial advisers to quickly establish and efficiently address the key issues you need to consider as part of your initial assessment of the MBO opportunity and to identify critical success factors at an early stage, for example:
1. What is the business worth? Is the current owners’ valuation reasonable and what valuation will be acceptable to those organisations that might fund your MBO?
2. What does an MBO process look like and what documentation will be required? Will the seller provide clearance to embark upon the MBO ?
3. What are the legal and taxation implications arising from the current ownership structure of the business? What are the hurdles and pressure points likely to be and what deal structure will meet the needs of all of the parties involved in the transaction?
4. Are there any wider issues to be addressed, for example, the impact of upcoming changes in any applicable legislation or any changes in employment law or any property issues.
5. Has the MBO team the requisite skills, abilities and drive to create a successful business, and the expertise to implement their plans and understand the industry and the issues faced by it ?
6. What professional advisers needed to be appointed and at what stage and what will they do? How much will it cost in professional fees and expenses ?
7. Who will fund the MBO, what financial returns will they require and what other requirements will they have?
If you would like a free of charge no obligation meeting on a totally confidential basis to discuss a possible MBO opportunity, please contact Neil Large at Davidson Webber LLP on 01423 727211 or 07920 003796
Davidson Webber LLP has played a major role in numerous high-profile acquisitions and disposals (including MBO and MBI work) valuing over £100 million in the last three years.
