Management Buyouts & Buy-ins (MBO/MBI)

Rayner Essex specialises in facilitating seamless transitions with our expert management buyout (MBO) and management buy-in (MBI) services. Whether you’re an existing management team looking to take ownership or an external team seeking to acquire a business, our comprehensive solutions ensure a smooth and strategic transfer of ownership. With a deep understanding of financial intricacies and market dynamics, we guide you through every step of the process, empowering you to navigate these complex transactions successfully. Find out more about how we can help you below.

What is a management buy-out (MBO)?

An MBO is a corporate finance transaction where a company’s management team combines resources to purchase all or part of the company they manage. The management team can then use their expertise to grow the business and generate a return on their investment. MBOs typically occur when the current majority shareholder wishes to retire or wants to exit the business.

An MBO can be attractive to the current owner as they can be assured of the commitment of the current management team. Plus, an MBO also limits the number of external parties that confidential information needs to be provided to.

What is a management buy-in (MBI)?

An MBI occurs when an external management team acquires a controlling interest in another company. This external team is introduced to either supplement or replace the existing management team.

This may be appropriate in situations where it is felt that the external management team will contribute additional skill sets. The purchasers will usually have experience of the sector in which the business operates and may even be serial entrepreneurs who have the backing of their own funds.

Our MBO & MBI services

At Rayner Essex, we will work on behalf of either the existing shareholder or the MBO/MBI team to put forward suitable proposals and evaluate those received, ensuring that the transaction proceeds successfully. Our services include:

Commenting upon or undertaking a valuation of the business
Proposing the structure of the deal
Suggesting suitable financing proposals
Considering taxation aspects for the new and existing shareholders

What are the benefits of choosing Rayner Essex for MBO/MBI services?

Management buy- outs and buy-ins are complex transactions that require professional project management and expertise to assess potential risks and understand your business requirements.

At Rayner Essex we have a team of highly experienced individuals that will be available throughout the process. With over 50 years of experience in accounting, we are equipped with the sound knowledge and judgement which has made us a trusted name for countless businesses. We offer a personalised approach, which is partner-led, to guide you through this important stage of your business.

Our corporate finance team will work with you through project conception, raising the necessary finance, executing the strategy and beginning the next stage of your business.

MBO/MBI FAQs

What is the purpose of a management buyout?

The primary purpose of a buyout is to provide an exit route to a shareholder.

How long does the MBO/MBI process take?

The process will typically take three to six months but this varies depending on the finance methods used in the buyout.

Which is the most appropriate succession strategy for my business?

This will depend upon a number of factors and is likely to be different for each business and its owners. The strategy will also be influenced by taxation which is a major consideration.