Management Buy Out / In (MBO & MBI)

SpecialismsManagement Buy Out / In (MBO & MBI)

Sometimes strong management teams are presented with the opportunity to take over the ownership of their business, or business owners have employees who exemplify great growth and wish to buy into a business. RadiusCF are well equipped to help facilitate such transactions.

MBOs/MBIs are challenging in nature as sometimes the close relationships that have yielded the successful opportunity will have strong differing views or goals. RadiusCF’s goal in such opportunities is to clearly manage the goals and personalities of the respective stakeholders.

Financing such opportunities can be challenging (many of these businesses are cashflow lends and not asset backed), but RadiusCF can advise on a blend of funding options (senior debt, private equity, alternative lenders, working capital debt solution, amending the structure of the deal with deferred payment and performance related payments etc.) that will enable the opportunity to be funded and help deliver a positive outcome for exiting and entering management teams at the same time.

Management Buy Out / In (MBO & MBI) case study


Case Study: Management Buy Out / In Sector: Engineering
Size: £Undisclosed

Our client was the key management team member in a business where they delivered large, sustained growth. We initiated contact with the exiting business owner, structured a deal between the owners and management and oversaw the legal process. We acquired senior debt for the client and structured the deal to enable the ongoing EBITDA of the business to fund the purchase with a substantial deferred payment that was paid over the following three years.