What is the role of an MBO adviser?
Early appointment of a corporate finance adviser once the possibility of an MBO arises is essential. Sterling’s role fully involves project managing all aspects of the transaction from the first meetings to completion.
We should do a feasibility review before talking it with the vendor.
Due to the levels of complexity of an MBO, the right advice at an early stage is crucial. During the MBO process, the team will be under extra pressure whilst continuing with their everyday management responsibilities.
Sterling will save you a lot of time and energy by estimating the management team’s chances of success.
This feasibility review will answer the following questions:
- Is there an MBO team?
- What price might the vendor want for the business?
- Can a finance package be constructed to deliver this price?
- What are the likely possible finance options?
- Who might have an appetite for the deal?
As the deal moves forward, the advisers will advise and help with all aspects covering the following:
- Assessing the feasibility of the MBO
- Approaching and negotiating with the vendor
- Drawing up heads of terms
- AdWe should content of the business plan
- Preparation of detailed integrated financial forecasts to demonstrate the serviceability of debt whilst maintaining adequate working capital
- Identifying lenders likely to be interested in the deal
- Approaching and negotiating with lenders
- Arranging and attending meetings with the proposed financial backers and helping to prepare presentations for them
- Helping to select legal and tax advisers
- Monitoring and helping to control deal costs
- Project management to completion