The opportunity to undertake a management buy-out comes to very few people and, even then, rarely comes more than once in a lifetime.
Running an MBO can be a colossal burden on the management team. In addition to performing their day jobs (which rarely get done during the day), they also have to negotiate the purchase of a business, and in all probability, raise the funding necessary for the acquisition. Such a burden can be taxing for even the strongest of management teams. The opportunities that result, though, are myriad and most teams find that the taste of equity ownership is very much to their liking.
Running an MBO is complex and, for most, difficult to achieve without specialist advice. We would argue that good experienced corporate finance advice is critical to a successful MBO.
We’d be delighted to talk to you about the process, the pitfalls and how to avoid them. In the first instance, we have compiled some of our thoughts and experience into the Meta guide on How to Run an MBO.