Monday 27 January 2014

Flexibility in funding management buyouts

When it comes to management buyouts (MBOs), there are often numerous stakeholders involved, including multiple advisors and shareholder groups, as well as the parties directly negotiating the transfer of ownership.

The key to closing a successful deal with so many people and so many differing interests at stake is to have flexibility in how you raise finance and value assets.

Close Brothers Invoice Finance is an independent firm with deep experience in management buyouts across multiple sectors throughout the UK and Ireland. We know how to work with multiple stakeholders to create sustainable finance deals to fund MBOs.

We realise that it’s essential that the finance deal doesn't leave the new team with a funding liability that could restrict growth of the business. At the same time, we recognise that the outgoing owner will usually expect a significant cash payment as part of any deal.

Using a blend of invoice finance and asset based lending, we can often structure an acceptable deal that traditional banks simply can’t broker, because they don’t have the flexibility to change their terms to meet specific needs of each individual business.

If you’ve been dreaming of an MBO but are uncertain of how you could finance it, why not explore the options with our experienced advisors. Simply call our expert team, in complete confidence, on 0808 252 0353.