Specialised Loan - Management Buy Out


A management buyout (MBO) is a transaction where a company’s management team purchases the assets and operations of the business they manage. The main reason for a management buyout (MBO) is so that a company can go private in an effort to streamline operations and improve profitability. In a management buyout (MBO), a management team pools resources to acquire all or part of a business they manage. Funding usually comes from a mix of personal resources, private equity financiers, and seller-financing. A management buyout (MBO) stands in contrast to a management buy-in, where an external management team acquires a company and replaces the existing management. Management buyouts (MBOs) are favoured exit strategies for large corporations that wish to pursue the sale of divisions that are not part of their core business, or by private businesses where the owners wish to retire. (Investopedia) In its simplest form, an MBO involves a company's management team combining resources to acquire all or part of the company they manage. Most of the time, the management team takes full control and ownership, using their expertise to grow the company and drive it forward.


A buy out can represent a solution to those owners who have a successful company, but don’t have a succession plan in place. It goes without saying that without a vendor who is prepared to sell, there is no deal; however, many vendors do not take the time to seriously consider all of their liquidity options’. (Deloitte)



Repayment terms

Agreed between Lender and Borrower.


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