If you are looking to fund a management buy out (MBO) then we can assist.
MBO’s are not limited to the large corporate businesses, there are many smaller / family owned businesses where a MBO would provide the ideal exit route to a vendor for the following reasons:
- You know the purchaser
- Confidentiality is contained in house
- No need to expose the business to the market
- Minimal disruption to trade and staff
- Vendors legacy can continue
- A part disposal can be negotiated
Many MBO candidates are deterred because of:
- Funding has always been an issue with MBO’s especially with the high street banks having either a blanket decline policy or are only willing to consider large (often EBITA >£2m).
Often because the complexities of a MBO are not understood by algorithms and “grey hair” is reserved for the larger transactions.
- Advisers in Corporate Finance departments of larger accountancy practices often charge eye watering fees for relatively small transactions.
Don’t let either of these two reasons put you off, a MBO can be a lucrative life changing event:
We have access to smaller, niche funders that really do have MBO appetites by looking at:
- ABL – (asset based lending) facility whereby the balance sheet assets are leveraged, or
- Cash Flow lenders – Funding is provided as a function of EBITDA
Our team has accountancy and banking experience (as well as grey hair) and we specialise in funding MBO’s for the SME market.
Call our MD, for an informal chat as to how we can assist……