buy-outs & buy-ins...
A management buy-out involves the purchase of a company or business from its existing owner by a management team or an individual working in the business. It has the benefit of ensuring continuity of personnel, and makes the change in ownership relatively smooth. A management buy-in is much the same, but with management from outside the entity buying in to the business. This can be perceived as a more risky transaction as both ownership and management are changing.
Opportunities for management to purchase are not always easy to spot. However, circumstances may include; a larger group divesting certain operations, companies selling off divisions due to financial difficulties, small/family business owners wishing to realise their investment, and where there are a lack of succession options within a family business.
Due to the high level of complexity and risk involved in such a transaction, it is essential that an experienced and qualified adviser is appointed at an early stage to project manage the process. The adviser's role includes negotiations with the vendor, financing institutions and other advisers, ensuring that the whole deal is managed in a structured manner.
We are able to assist with:
- Advising on the feasibility of the proposed transaction
- Valuation of the business
- Identifying buy-in candidates (if appropriate)
- Formulating an offer to the owners
- Negotiating with the owners
- Fund raising
- Business planning & financial modelling
- Advising on the deal structure
- Managing the legal and due diligence process
- Overall project management
Other Transaction Support Services include:
- Financial due diligence
- Transaction tax
Lead Advisory Services are provided by our dedicated team of full time corporate finance professionals who have experience of handling transactions from £1 to £100m across a wide spectrum of business sectors. Other Transaction Support Services are provided by an experienced team drawn from within Dains Corporate Finance and other specialist departments.
We are pleased to consider proposals of any size and if you have an enquiry, we offer an unconditional and informal discussion of your plans and requirements. Depending on the individual circumstances of each case we are able to negotiate a flexible basis for charging for our services which can be tailored to suit your requirements.