Management Buyouts
The Dream
Most senior Managers/Directors have perhaps at some point in their career thought about taking over the company they work for, (which may often be the best option) as apposed to starting their own new business from scratch, and being a direct competitor of the company they currently manage.
So What Do You Do About It?
Well you will need to know that if your management team decides to undertake a ‘MBO’ that it is complex and there are risks involved(but then again so does starting a new business) so its all about calculation of the risk and considering the ‘for’s and against’, one thing for sure the team need to be very committed and be prepared to burn the midnight oil to achieve a sensible offer to the seller who may not at this point even be aware of its own managements intentions.
After making the decision to go forward with the ‘MBO’ the key points for consideration would be based on many factors and we have listed some areas which maybe helpful, as you will need to appoint several professional representatives.
