How to pull off a successful MBO in 4 easy steps
A MBO is the closest to a "win-win" in business as you can get. Considering it? Here's what you need to know to get it right.
A management buyout can work well for all parties involved in the transaction. If you are considering it, here's a quick run through of the key stages to help plan the process.
Stage one: Shape the deal
Carry out an analysis of the existing business, its strengths and weaknesses – and start to form a view of whether an MBO is feasible and, if so, what it might look like.
Create a rudimentary deal structure, understanding whether the vendor wants to remain involved – and, if so, what this will look like in terms of shareholding and involvement in running the business in future.
