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Key Considerations

Management buy-outs and buy-ins

Agreeing on the members of the buy-out / buy-in team – the quality of the management team is the most important factor in running a successful business and the ideal team will be ambitious, have experience at the business or of the sector it operates in, proven within the business (if an MBO) and capable of gaining the existing owner’s trust and confidence.

Assessing the opportunity for suitability and seeking the current owner’s approval to pursue a possible MBO – we can work with you to get a thorough understanding of the financials and what the future might look like from a broader business perspective. If you need it, we can help with the opening discussions and negotiations with the owner.

Determining an appropriate price – we have been valuing businesses for our clients pretty much since we first opened our doors in 1923! While our own management team isn’t the same class of 1923, they do have a wealth of expertise in providing robust valuations for clients in a wide range of different sectors.

Writing a business plan – the business plan is a really important tool but one which we find so often lacks appropriate depth and detail. We can help write the business plan to provide accurate context to how you direct the business resources for growth and to win over and reassure financiers of the viability of the business long into the future.

Obtaining financial backing – we have invested a lot of time into building a strong network of banking contacts and other financiers we know and trust.  We routinely introduce our clients to contacts we think will fit with their business – not only to serve their funding needs but to become part of their support network.

Deal due diligence – our audit team will undertake a thorough review to make sure you will have warts and all view of the business you are looking to buy. Nobody wants nasty surprises down the line so this step is of paramount importance.

The deal negotiations – in the case of MBOs, knowing that the owner and management team have a history working together, that extra level of care is needed to ensure both sides are feeling comfortable with the buy-out deal. Negotiation is a blend of art and science, and our clients tell us that they really value our insights and handling in this area.

Additionally, we often take on a coordinating role with the appropriate financial and legal advisers to take that pressure off our clients.

To learn more about how we could help you with your MBO or MBI goals, please call Malcolm Coomber on 020 8652 2450 or email mec@clarksonhyde.com