Management buy-out (MBO)
It frequently occurs that a company will not be sold to an external party, but to the current management. In such a process Van Oers Corporate Finance can act as the buy-side advisor and support the management. The various phases of the process for the management in a Management Buy-Out are clarified in more detail below.
Management buy-out - preparation
If you are, as the current management, considering to buy the company, Van Oers Corporate Finance normally arranges one or more exploratory meetings to discuss the objectives of the transaction. Depending on the goals and expectations you have set, we arrange one or more meetings with the shareholder(s) to manage the expectations of both parties.
Management buy-out - execution
A Management Buy-Out is a unique situation in which, in many cases, the management has contributed to the success of the firm. There is also a greater “willingness” factor which can be expressed in both the purchase price and/or the transaction structure. Van Oers Corporate Finance advises management regarding to the valuation, the structure of the transaction, the letter of intent and the financing. In case of a Management Buy-Out, it frequently occurs that the seller partly finances the deal with a vendor-loan.
Management buy-out - completion
Coordinating the due diligence investigation
After the letter of intent has been signed by both parties, the Management Buy-Out team has the opportunity to verify the correctness and completeness of the information and administration provided. This is commonly known as the due diligence. Often purchasers are keen to investigate various fields, such as financial, legal, staffing and organization, the environment, fiscal, insurance, operational, etc. The collection of this information without staff knowing about it or cooperating is a time-consuming process. The information is collected in a (digital) data room.