Selling their company to key managers is an attractive exit scenario for some owners. A management buyout (MBO) can be a good option for an owner who wants to sell his business and not go through the process of selling to an outside buyer. In most cases the owner has a good relationship with the management team and has confidence in their ability to manage the business. This can lead to a smooth transition, meaning less risk for the business and a better chance for the management team to secure financing for the buy-out. Financing is often the biggest challenge to an MBO so the management team must be willing to put their own money at risk to show their commitment to their potential investors, which may be banks, the seller, or private equity.
Austin Dale Group can help you analyze, structure, and finance a management buyout that makes sense for all parties. Our services include strategic exit planning, business valuation, deal structuring, and helping to arrange the financing.