Management Buy-outs / Buy-ins
For many entrepreneurs, leaving a lasting legacy is a personal goal when they decide to move on. Management Buy-outs (MBOs) have become increasingly popular in the UK as a succession planning and business disposal option for owners.
Consilium Chartered Accountants are proud to have provided Management Buy-out services for many of our Scottish clients as they pass the baton to the next generation. Our clients benefit from the full range of service lines and expertise we offer, combined with end-to-end management of the Buy-out process.
As Management Buy-out specialists, our Corporate Finance and Tax teams can:
- Support the management team in developing their business plan, financial projections and proposals
- Undertake financial due diligence, business valuations and tax assessments – both corporate and personal
- Source external funding to support the MBO from financial institutions, Private Equity or angel investors
- Negotiate with the business owner, external funders and advisors
- Evaluate and mitigate tax outcomes and liabilities – both corporate and personal
- Post-deal support includes the preparation of completion accounts and personal tax planning.
Why sell to a Management Buy-out Team (MBO)?
MBOs can secure a continuing legacy for the business you have built by handing control to an experienced and well-established team of senior managers. As well as offering greater security, the management Buy-out process provides stability for the workforce and supports a smooth transition as key members of the team are retained.
While a trade sale could generate a higher purchase price, Management Buy-outs typically result in a faster sale, better guarantees for the workforce and less chance of the sale falling through.
Leading Management Buy-in advisors in Scotland
Management Buy-ins (MBIs) differ from MBOs in one key area: the management team typically work together to find and acquire a new business to run. Consilium Chartered Accountants regularly support ambitious management teams as they invest in and build successful businesses.
Similar to our work on MBOs, Consilium’s Corporate Finance and Tax teams are specialists in advising prospective MBI teams. In particular, we have extensive experience in the following areas:
- Working with management teams to source and assess potential businesses for investment
- Conducting financial due diligence, business valuations and tax assessments – both personal and corporate
- Sourcing funding for the MBI, in addition to their own capital
- Negotiating with the business owner, external funders and advisors
- Mitigating tax liabilities – both corporate and personal
- Post-deal support includes preparation of completion accounts and personal tax planning.