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A management buy-out (“MBO”) is a complicated transaction process in which a company's management team buys the assets and operations of the company they currently run.
Any MBO process requires a competent and strong management team with a track record in their current job. The majority of the time, management does not have enough equity to fund an MBO transaction on its own. Finding the suitable equity and debt financing partner is, thus, a major task.
RSM has conducted countless MBOs in a large variety of deal in terms of size and sector, and our team of specialists is dedicated to providing our clients with creative, independent, and honest advice.
We also have extensive experience with MBOs of family businesses, which may be a more emotional process.
From the perspective of the current owner, succession planning is a critical subject that requires extensive support and guidance, which our experts can provide.
While MBOs usually require a less excessive due diligence process, with the purchaser’s knowledge of the business, we understand how stressful it can be to embark on this process while continuing to manage the day-to-day of the business.
In addition, although a highly effective mechanism for achieving a change of control, MBOs are known to be difficult to negotiate. Through handling MBO transactions for many years, we acquired a deep understanding in managing these complex processes. We’ll help you, the purchaser, navigate the complexities to reach a successful conclusion.
To support effective negotiations, we will frequently:
- Advise on the financial model and business plan.
- Analyse relevant transaction structures.
- Manage the due diligence process.
- Provide commercial input to the legal agreements.
Sourcing and negotiating the most appropriate means of financing a MBO can be time consuming and risky. Through close collaboration with you and thanks to our knowledge of the financing market, we are striving to reduce execution risk and strike the optimum deal through an efficient and structured process.
Every transaction is different and need an adapted strategy. Therefore, we offer you our years of experience and extensive knowledge of potential complex challenges in transactions' field in order to ensure you a successful outcome for your deals.
