Management buy-ins and buy-outs

Plan for your retirement

Management buy-outs (MBO) offer a lot of management teams a once in a lifetime opportunity to own their own business and should always be considered by entrepreneurs that are looking to sell their business. 

MBOs usually involve a purchase by individuals who already work for the company, often the existing management team who join together to facilitate the purchase. There are clear advantages, as the fresh team are already familiar with the company, giving them a head start in what might be their first stint as business owners. 

The previous owner, meanwhile, can leave their business safe in the knowledge that it’s in good hands. That’s important to a lot of business owners who naturally want to ensure the business they created to continue after they’ve moved on or retired.

bennettbrooks can assist with every detail of your MBO and aide negotiations so the transition runs as smoothly as possible.

Management buy-ins

Management buy-ins (MBI) are very similar to MBOs, only that they involve a purchase from outside the company so it is a completely new team taking on ownership of the business. 

MBIs are often seen as a riskier proposition by funders than MBOs, as there will be a significant learning curve for the incoming management team to negotiate when they take over the business.

Buy-in management buyouts (MIMBO), a mixture of the two approaches, maybe a suitable alternative for you if neither one suits your needs.

Whether you’re an MBI or MBO team, or a business owner, we can help you. Don’t hesitate to reach out to us for advice.