Why you should appoint a specialist adviser?

It would be unwise for a management team to attempt a buyout without taking any specialist professional advice. Why? To answer this it is worth considering the following questions:

• Is the MBO team confident that a buyout is feasible?

• Does the team know what the business is really worth?

• Are management aware of what deal price and structure can be funded?

• How does the MBO team intend to handle the sensitive negotiations with the vendor, who is also their current employer?

• Have management got the contacts necessary to raise the appropriate type and mix of funding?

• Are the MBO team able to write a high quality business plan and compile a robust set of financial projections. These need to be suitable for scrutiny by potential funders and need to stand up to a detailed review by independent accountants carrying out due diligence for the funders.

• How will the buyout team know that the funding packages offered are the best available and represent both best value and are the most appropriate for the business going forwards?

MBO Feasibility Review

The importance of our input at the feasibility stage cannot be overstressed. We see many instances where vendors and buy out teams spend considerable time agreeing a transaction before we get involved, where the price or structure cannot be funded. Our Management Buyout Feasibility Review service is designed to give management teams and / or exiting shareholders a good understanding of what is achievable before starting on the MBO process.

Our services

Appointing Strategic Corporate Finance to advise on a management buyout will ensure that:

• The right price is negotiated with the right payment terms.

• That the MBO team itself does not have to lead the negotiations with the vendor, also the team’s employer – therefore mitigating any potential conflicts of interest.

• The buyout team gains access to the most appropriate sources of finance and the people providing that finance.

• That a professional, robust and credible business plan is presented to potential funders.

• The financial projections compiled are robust, justifiable and will stand up to detailed scrutiny by funding providers and independent accountants appointed by the chosen funders.

• That the optimum funding package is selected.

In essence we project manage and lead the entire buyout process from the outset to legal completion, shouldering the burden of each stage.

A buyout is often relatively time consuming, complex in nature and there can be a number of unexpected developments as progress is made towards legal completion. Using our services will allow the team to continue running the business unhindered by these demands.