Management buy-in (MBI)
You want to become an entrepreneur and you are thinking of a Management Buy-In (MBI). This means taking the first steps towards becoming an independent entrepreneur by purchasing an existing company. The nature of the business acquisition (shares or assets, real estate etc.) and the complexity of the required financing and negotiations determine to a large extent the content and the duration of the Management Buy-In process. The various steps are clarified below.
Management buy-in preparation phase
Drawing up a search profile
Once you have decided you are willing to take over a business, it is important that you analyse the characteristics this business ought to have. Examples are the sector, the size (number of employees), place of business, nature of the services provided or the products, etc. It is important to understand what kind of businesses match with your competencies and interests. Approaching the targets and negotiations Van Oers Corporate Finance supports the MBI candidate with approaching the targets, arranging the meetings and managing the negotiations.
Management buy-in purchasing phase
Collecting information and valuation
Once the preparation phase has been successfully completed, it is of great importance that the agreements are clear and businesslike. Depending on the specific situation the purchaser will have to carry out an analysis of the business. We will use this analysis to collect information on the target in a structured manner. The most important focus is, of course, the value of the business to be taken over.
Management buy-in completion phase
Coordinating the due diligence
After the letter of intent has been signed you have the opportunity to verify the correctness and completeness of the information and administration provided. This is commonly known as the due diligence. In most cases this means that your advisors, such as the accountant, tax specialist, lawyer etc. will want to investigate the correctness and completeness of the information provided earlier in the process. The formulation of the sub areas to be investigated and the possible influence of the outcomes on the takeover values can be crucial for the successfulness or otherwise completion of the transaction.