Management Buy-Outs
A Management Buy-Out is a rare opportunity to combine responsibility for key decision-making with the rewards of business ownership.
They occur where the management team of a business acquires the company or business from its owner.
For vendors, the Management Buy-Out can sometimes represent the most viable exit route, as not all companies have a logical trade buyer.
Additionally, sale to the management team gives certainty of exit and a less onerous financial due diligence and legal process.
A Management Buy-Out can be funded by debt and deferred consideration, or for a market leading company with a strong management team, can be Private Equity led
Management Buy-outs – Our Service
A Management Buy-Out is often relatively time consuming, complex in nature, and there can be several unexpected developments as progress is made towards completion.
It is, therefore, key to appoint corporate finance advisers who are focused on advising you and have the experience to successfully lead you through every stage of the transaction.
We are specialists in advising on and raising funds for Management Buy-Outs and are experienced in raising debt and Private Equity funding where appropriate for this kind of transaction.
Transactions can be vendor led or management led in term so advice, valuation, structuring and funding, we are able to take appointment from either party to the transaction.
Typically, we will lead all stages of the Buy-Out, including.
- Establishing the feasibility of the Buy-Out, thereby ensuring that any other put forward is sufficiently attractive from the vendor’s perspective, realistically priced, structured, and fundable.
- Negotiating the main terms of the transaction, including price and structure.
- Advising on the most appropriate funding structure for the transaction.
- Assisting in the preparation of presentations for funders and seeking/negotiating the debt and equity requirement.
- Delivering our extensive experience to ensure the project is managed professionally and efficiently from start to a successful completion.
- Assist the management team in structuring its involvement and related shareholdings.
Our input is key at the feasibility stage
We see many instances where vendors and Buy-Out teams spend considerable time agreeing a transaction before we get involved, where the price of structure cannot be funded, as negotiations and agreements are made with a lack of knowledge of the debt and equity funding markets
A Management Buy-Out is a complex transaction and the key is the feasibility stage, ensuring that valuation and structuring is done in line with what’s possible in the debt/equity markets. It vital, therefore a vendor or management team contact us for a feasibility review before anything else is moved forward.
To make an enquiry about Management Buy-Outs, please contact one of our Directors using the details below.
Management Buy-outs Case Studies
Management Buy Out of leading Professional Valeting Services Company from Specialist Global Credit Management firm
Direct Valeting Limited, one of the UK’s leading professional valeting service providers, has changed ownership following a Management Buy Out, advised by Yorkshire based Corporate Finance specialist, Castle Square Corporate Finance.
Management Buy-Out of Vecta Risk Partners
Castle Square advise on the Management Buy-Out of Vecta Risk Partners
London based insurance business, Vecta Risk Partners (Vecta), has been acquired through a Management Buy Out, which sees the team of Richard Gorely, Vyvian Townend and Andrew Juggins buy out the majority equity stake of corporate shareholder, Castle Underwriting Agencies Limited (Castel).
A Deal Made in Sheffield with a Local Cast
A company which is a world leader in its field is poised for significant growth following a management buyout from the University of Sheffield, which has concluded alongside fundraising to take the company to its next phase of growth.
Castle Square advise on the Management Buy-Out of Glanville Consultants
Castle Square advise on the Management Buy-Out of Glanville Consultants
Engineering, design and surveying consultants, Glanville Consultants has changed ownership in a Management Buy-Out.
Castle Square advise on Management Buy-Out
Castle Square advise on Management Buy-Out
Rotherham headquartered Mattressonline.co.uk Limited; the leading independent online mattress and bed retailer supplying market-leading brands to consumers across the UK has changed ownership in a Management Buy-Out, led by Managing Director, Steve Adams. Established in 2003 by Steve Adams and Steve Kelly the company was one of the first on-line mattress e-retailers. Steve Kelly has now taken the opportunity to realise his investment in the business through the transaction.
Castle Square advise on £23m double Private Equity Deal
A new force in the travel sector has been created by the simultaneous completion of two transactions, intended to be the first stage of a buy and build play in the specialist travel sector, in which Sheffield based dealmaking firm, Castle Square Corporate Finance played a key role.