A management buy out (MBO) is a once in a lifetime opportunity for the management team of a company to buy the business that they work in. It is a complex, time consuming process with a mixture of emotions as the transaction progresses.

Management Buy Outs are particularly popular with the SME sector.

In order for a management buy out to be successful, the management team must have a plan to develop the business. The management team will need to invest their own funds in the MBO however a relatively small contribution from the management team can result in them owning all or a significant amount of the company. Accordingly, a management buy out gives the management team the ability to generate significant personal wealth from a relatively modest outlay.

We work with the management team throughout the process and our role typically involves:-

• Undertaking a feasibility review at the outset of the MBO to ensure the proposed transaction is achievable. This includes assessing the value of the business and sources of finance available. We are in regular contact with all funders and are aware of their current appetite and headroom requirements.
• Understanding the roles within the management team, if there are any gaps we can introduce individuals to augment the current team.
• Assisting the management team with the preparation of a funder friendly business plan and fully integrated sensitisable financial forecast
• Introducing the management team to appropriate funders (debt and equity) and leveraging our relationships with the funders to ensure the plan is received in a positive manner
• Developing a transitional plan to be implemented post completion
• Negotiating the terms with the funders and vendors
• Acting as project manager and co-ordinator for all parties throughout the entire transaction.

Our role does not end at completion. WMT are regularly involved in working with companies once the management buy out has been completed.

Vendors considering a Management Buy Out as an exit

We regularly advise the exiting shareholder as it is important the terms they are offered by the management team are competitive in both overall headline terms and the split between cash paid on completion and deferred payments.


As we regularly raise finance for companies, we are fully aware of what is available and achievable in the market place thus ensuring the vendor receives the best deal without prejudicing the future of the company.

Management Buy In

A management buy in is similar to a Management Buy Out except the team who will own the company post completion do not current work in the business. These are inherently riskier than an MBO.

In addition to the work that is undertaken for an MBO, we can help Buy In candidates identify the target companies.

Click on the following link to view a differing shareholder aspirations resulting in an MBO case study.

For further information about our Corporate Finance service please contact Andrew Williamson on 01727 838 255.