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MANAGEMENT

BUY OUTS

Advice. Planning. Financing. Execution.

When maximum value can be found in continuity & succession, our MBO advisory service will take care of your interests.

Selling a business to a management team can be a complex but rewarding process. Sometimes it is absolutely the right thing for you and your business.

However there are many factors which need to be considered, from financing to valuation to vendor protections, to get it right.

Symmetry Corporate Finance have advised on numerous MBOs over many years from business based in London, Kent, Reading and across the UK, managing the whole process to ensure a successful outcome for clients like you.

In simple terms the steps that are required to successfully complete a Management Buy-Out are:

1. Ensure there is a long term business plan.

This should include a full commercial, financial & legal assessment that makes a buy-out possible and attractive to potential investors.

2. Agree a valuation.

Not only does this need to be acceptable between the selling shareholders and the purchasing management team but also must be at a level that can be funded.

3. Source funding and agree terms.

There are a number of ways to fund a given MBO, including Private Equity investment, institutional or 'challenger' bank lending and securitised loan notes or some combination. The right one for you will depend on your specific circumstances & objectives.

4. Due diligence and contracting.

The scope and depth of due diligence will depend on the source(s) of finance underpinning the transaction.  This is also true of the contracting and associated legals, from drafting Heads of Terms to finalising the Sale & Purchase Agreement & Ancillaries. 

Symmetry's MBO Transaction Delivery Service covers everything you will need to safely & successfully complete your Management Buy-Out:

  • Full Process Management & Advisory, from negotiating optimum value and deal structuring to due diligence

  • Financial Modelling to underpin valuation, financing and transaction mechanics

  • Assessment and Sourcing of Funding on the best possible terms

As a business owner, you may be surprised to learn about the various ways that management teams finance buy-outs in today's financial market. Your management team may not be independently wealthy at the outset of the process. And so you may not see how they could afford to buy your business. However, Symmetry have instigated multiple transactions where our expert deal structuring, Private Equity outreach and Corporate Finance expertise enabled our clients to achieve maximum value in an MBO sale anyway. 

Or, you may be part of a management team contemplating a buy-out and would like to explore MBO finance options available to you. Perhaps you would like to approach your current employer about a possible buy-out, or you may have been approached about the possibility. With experience supporting management buy outs in London, Reading and across the UK. Get in touch with Symmetry Corporate Finance today for further support and learn more.

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