How The MBO Group can help with your Management Buyout
The MBO Group specializes in coaching managers on how to complete successful Management Buyouts. We spend a great deal of time helping you understand the process of buying your company and the risks, as well as the rewards, which you may face.
We are very patient advisors – no question is too trivial and we encourage a slow cautious approach. This will likely be the biggest investment decision in your life.
The MBO Group is here to guide you through all the stages of a successful Management Buyout:
Pre Offer: Helping you understand what you’re getting into
You and your team will have many questions on how to approach a Management Buyout and on what you are getting yourselves into.
The MBO Group will advise and guide you through the whole process, helping you address such concerns as:
- Who should participate and who should lead
- How to approach the owner
- How much money will you have to invest
- How much money can you hope to make
- How will your responsibilities change after the Management Buyout
- What are the risks of a Management Buyout
- How you raise the right financing for your Management Buyout
- What should you offer the owner and how should the deal be structured
Putting in the Offer: Ensuring that the right deal gets done
One of your biggest challenges in approaching a Management Buyout is figuring out what you can afford to offer and how you finance the buyout. The MBO Group helps you craft the right deal, one that’s a “win win” for the owner and your management group. Our honest, open and professional approach allows us to have those candid and often difficult discussions with you, your fellow managers and your owner, taking the emotion out of these dialogues and facilitating getting the right deal done.
In a Management Buyout the right deal is one that also addresses all the managers’ concerns surrounding what being a shareholder is all about – such as how and at what value do you get your money back. All of these concerns should be spelled out in your Shareholders Agreement and The MBO Group’s vast experience in Management Buyouts can prove invaluable when tackling this most important document.
Closing the Deal: Getting you the right financial partners
The MBO Group works with you to ensure that you have the right blend of financing - banks, subordinated debt, private equity, vendor payments – that will maximize your personal return on your investment while at the same time making sure that you have the appropriate financing to grow your company while minimizing your risks. We have the knowledge of, and connections with, all the various types of financing that support Management Buyouts.
Post deal support: Helping with your new financial partners
One of the challenges that managers face post buyout is dealing with their new financial partners – banks, subordinated debt and private equity investors. The MBO Group will continue to work with you to help manage these relationships as you go forward and help with their various reporting and monitoring requirements. And we’ll be by your side as your relationships with your financial partners evolve to accommodate your growth. And finally, The MBO Group will help with the “exit” financing as your partners retire or seek liquidity on their investments.
In Their Words
The MBO Group seems to have a unique ability to uncover interesting and worthwhile opportunities in the Canadian private company market. I have had the benefit of working with them in a variety of situations. They have always been able to capture the essence of what makes a project assignment or deal work in a very strategic way that others can embrace. With a rare ability to communicate clarity they are able to efficiently bring individuals as well as groups to understand what it takes to achieve success.
FCA, Former CEO & President, Marsulex Inc.