A management buy-in (MBI) involves bringing in an external individual to lead the existing management team in purchasing all or part of the owner’s share capital. If as a business owner, you are “paternalistic” in your outlook, then a buyin or buyout transaction can be a very effective way of securing your legacy for the future.
As a business owner, you’ve probably been busy building your business and haven’t necessarily thought about replacing yourself as Managing Director. But not to worry……….in order to complete a successful mbi, an owner will need to find a highly capable and experienced Director to “take over the reins” of the business. This is where we can help you.
A buyin or buyout can enable an owner to depart in a more controlled manner than some other methods of sale. These transactions can be an effective way of overcoming some of the common issues with the sale of a business, particularly a trade sale, whereby the incoming trade buyer could negatively affect the legacy of your efforts through rationalisation, redundancy programmes and site closure. If you are looking for support to develop your business and realise maximum value when the time is right, then we can help. We are a key provider of these services to owners of private companies across the UK in particular.
Some common sell side issues for owners to consider:
- Business not ‘sale ready’
- Performance dip during the sale process
- Issues arising from due diligence
- Difficulty in sourcing trade buyers
- Vendor reticence in sharing sensitive information
- Vendor unable to achieve sufficient value initially
- Vendor gets cold feet
At Auxilium, due to our mix of corporate finance & executive search skills we can offer Vendors short or medium term solutions to these problems that can help to make a business ‘sale ready’ and/or keep a transaction progressing.