Management Buy-In/Buy-Out

BTG Advisory has extensive experience in management buy-out (MBO) and management buy-in (MBI) processes, guiding management teams and other individuals in the purchase of a company with the intention of operating it post-completion. MBOs are led by existing employees, while MBIs are external individuals. These transactions are typically financed by debt or private equity.

MBOs are a common exit strategy for private company owners seeking retirement or for larger corporations selling non-core divisions. MBOs offer the existing management team high potential rewards, with a clear advantage lying in the acquirers’ existing deep familiarity with the business and its clients to reduce the learning curve and transitional period.

Our team understand how intricate these deals are, and how to maximise value for our clients. We are aware of the many pitfalls that can jeopardise an MBO/MBI process. Consequently, our approach to deals is organised in meticulous detail, from negotiation preparation with vendors, gaining a deep knowledge of the business operations and financial information and sourcing appropriate funding through to a smooth completion. Our strong lender relationships allow us to source and structure financing appropriate to our clients’ present and future business needs. We are recognised as a leading adviser on MBOs/MBIs with the experience, commitment and relationships to manage the complex and time-consuming process. 

Sell-side advice

For business owners looking to sell, an MBO may be an ideal exit, with two forms: one initiated by the management team and another driven by proactive owners – a vendor-initiated management buy-out (VIMBO). Initiating the buy-out ensures execution on the owner’s terms, but understanding VIMBO intricacies is crucial. Maintaining cordial relationships is vital to ensure both the continued smooth running of the business and the success of the transaction, emphasising the need for an experienced and sympathetic adviser. BTG Advisory’s corporate finance team excels in this role.