Management Buy Outs and Management Buy Ins
Want to sell your business to the management team or a partner / shareholder but there is no capital available?
Hyde House specialises in innovative solutions to the problem of succession and exit planning.
It is not unusual to conclude that the best purchaser for your busines might be a member or members of your management team or even a fellow shareholder or partner.
After all, you know them, they know the business and therefore the risks of transfer and ongoing success are massively reduced.
The problem is one of money and in particular the availability of capital. This need not be a issue if both parties i.e. the Seller and the Buyer are prepared to enter into a Seller sponsored and frictionless dialogue.
Hyde House can demonstrate how to structure a transaction without having to obtain additional finance or mortgages, how to achieve an optimum valuation and how to ensure the legacy of the business.
As a business owner you may be concerned that your management team may not be capable of managing a buy in or buy out:
How will they raise the necessary funding?
How will the negotiations affect the day to day running of the business?
How will the deal be structured?
What is a fair selling price for my business?
A management team contemplating buying out or buying into a business will probably be considering the following issues:
What will the owner accept as fair value and can enough funds be raised?
How will the deal be structured and what will our earnings be?
How do we get the best deal from debt and equity providers?
Your MBO / MBI Funded:
The existing management team are often potentially the most appropriate buyers of your business.
They should have a full understanding of the business and its future potential. However accessing the funding required can be a daunting prospect and often requires the support of the seller.
Barry Parsons (Managing Partner) has personally raised over £30m of debt and equity for his own ventures. This essential experience allows Hyde House to assist management teams to secure the funding they need to complete their management buy out / buy in.
We are actively looking for buy-in and buy-out candidates. Our investment partners have funds ready to be invested in MBO/MBI transactions as well a full a partial exits. We can help prepare plans and strategies to ensure access to finance is successful and ultimately the shareholders and management team are able to successfully conclude their transaction.
Your MBO / MBI Structured:
Our experienced professionals will manage the MBO process. They will work to understand the business to identify the most appropriate methods of structuring the deal, ensuring the buy out /buy in is affordable, fair and achievable.
Your MBO / MBI Completed:
An MBO or MBI is a complex transaction with many potential issues that will need to be addressed and resolved in order for the deal to succeed.
Our services are led by a Senior Partner with the extensive the skills and experience necessary to project manage the transaction.
We can bring together both the shareholders and the management team to find a deal structure that is affordable and fair to both parties.