Management buyouts (MBOs) and management buyins (MBIs)Right price, right business and right financial structure |
Management buyouts (MBOs)
Buyouts are rapidly gaining in frequency and scale in the Australian economy. A management buyout (MBO) is usually an exciting, once-in-a-lifetime opportunity for managers to own a significant stake in their business. But it can also be a major distraction: the managers must resolve many important issues regarding the structure of the transaction and the raising of funds, while attending to the normal running of the business.
As experienced buyout advisors, we help management through each stage of the transaction, ensuring that the right price is paid for the right business with the right financial structure. Our independent advice and support will help avoid the many pitfalls and increase the team's chances of success. We offer complete transaction management including:
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feasibility assessment - both of the business and the proposed buyout
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valuation of the business - to access the parameters for negotiation
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financial structuring - to optimise the terms of the transaction
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capital raising - selection of and approach to the best financial institutions for the client's needs, and help to secure the funds required
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tax planning - to advise on corporate and personal tax planning opportunities, share incentive schemes, GST and stamp duty
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negotiation - with prospective financial backers and the vendors of the target business
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pensions - to advise on the pensions implications of the buyout and negotiate with the vendors' pensions advisers
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completing the buyout - as we have been through the buyout process many times, we are well placed to project manage the transaction to a successful conclusion.
Our practical guide to MBOs provides further advice. Please send us an email to be sent a copy.
Management buyins (MBIs)
A management buyin (MBI) has all the features of an MBO but carries much higher risk, because the prospective management team has less familiarity with the business. Nevertheless, MBIs are popular: the concept of merging a proven management team with a business that has yet to realise its full potential has many attractions. We can help to reduce risk by careful analysis of the business' strengths and weaknesses, and by tightly-focused financial investigations.
For information on our MBO or MBI related services please contact a member of our Corporate Finance Advisory team in your location.