A management buy-out or MBO, occurs when the owner of a company sells some or all of its shares to a new company. This is financed by a mix of the management team, a bank, and private equity investor(s).
Buy-outs are now one of the most popular forms of acquisition. Typically the majority of buy-outs tend to be for small and medium sized companies, divisions and subsidiaries, and if the laid out plans are achieved, management can often make very high returns.
We have set out a clear management buy-out guide that is available for download, to aid managers or owners who may be considering a management buy-out (MBO).
The guide lays out some of the critical decisions that have to be made, issues that may be encountered, key management buy-out examples, what else should be considered, and how the team at Ashcroft can provide assistance throughout the management buy-out process from start to finish.
If you are in need of any further advice or support throughout a management buy-out, or any of the topics in this guide. please don’t hesitate to get in touch with our Corporate Finance team.
