Management Buyouts (MBOs) are often triggered when the founder of a business wants to retire, and the company’s managers acquire all or a large part of the company’s shareholding from the current owner.

However, MBOs also occur when a parent company wants to dispose of part of its business. MBOs typically require financial resources beyond those of management, such as bank debt or bonds. A Management Buy-In (MBI) is a corporate action where an outside manager or management team purchases a controlling ownership stake in an outside company and replaces its existing management team. This type of action can occur when a company appears to be undervalued, poorly managed, or requires succession. While a management buyout can represent an excellent opportunity for a company’s management team, often a substantial sum is required to finance the transaction. 

The make-up of management buyout (MBO) finance can be quite complex and often consists of a mixture of debt and equity finance, with numerous parties involved. 

We can help you to find the funding for your MBO activity. With considerable experience in the MBO/MBI arena, we have access to a wide range of lenders to provide you with the right funding support for your acquisition and beyond.