Management Buy Out (MBO)

A Management Buy-Out ("MBO") is when a business is sold to the existing management team. We can help with all aspects of the management buyout process.

During an MBO our role is pivotal, we work alongside you to in all aspects of the MBO process (from initial negotiation of the deal, through to business planning, sourcing finance and legal completion). We will project manage the whole transaction to a successful conclusion, leaving you to concentrate on running the business.

As the existing management have inside knowledge of the business they are in the best position to take the business forward. In many cases, selling to the management is the preferred option to the existing owner, rather than selling to a competitor.

An MBO offers ambitious managers an opportunity to run their own business and benefit from their own efforts through increased remuneration and a valuable asset to sell on in the future. The main problems for the MBO team will be securing the necessary finance, both for the acquisition and future working capital.

At Sterling Capital Reserve Ltd, our corporate finance advisors have extensive experienced in accountancy, corporate finance and banking. In all transactions we work alongside our commercial finance brokerage, which enables us to access many different sources of finance to ensure that the most appropriate funders are approached.

It is a myth that MBO's have to be multi million pound businesses, before they can obtain affordable professional advice. At Sterling Capital Reserve Ltd most of the MBO's we conclude are in respect of businesses in the £500k to £5million turnover sector.

As we are an independent business and not owned by any of the larger accountancy practices, we can undertake MBO's at "sensible fee" rates.

With access to many innovate and aggressive debt finance providers, most of our MBO's have been funded without the need for Venture Capital.