A management buyout (MBO) is an effective strategy for transferring your business to a skilled management team, ensuring its continued success. At Pegasus Funding, we provide expert guidance and support throughout the MBO process to prepare you and your team for a smooth transition
Steps in a Management Buyout Process
A management buyout (MBO) transfers control of a company from the current owner to the existing management team. This process involves several stages, including planning, securing financing, and executing the transfer. The benefits of an MBO include continuity, as the management team already understands the business, its customers, and its staff, ensuring a smooth transition.
Before proceeding with an MBO, consider the following critical questions:
- Is the management team capable of taking over?
- Are the necessary organizational structures in place?
- How can you maximize value and support for your management team?
- Are you prepared for a complete exit, or would you prefer a phased transition?
Commercial Funding
Business strategy and restructuring
Before handing your company over to a management team, you must ensure the appropriate structures are in place. You also need to plan what is required to enable your managers to take over, equipped with the proper skills and experience, and effectively run the company after you have stepped away. We will work with you to create a strategy that supports your managers and keeps your business’s interests at heart.
Exit planning
Our exit planning services seek to allow you to leave your company having achieved everything you wanted. We also focus on the company position after your exit, so your staff, stakeholders and customers are protected, and an environment remains in which the business continues to prosper.
Transformation
A transformation of any form requires significant change for a business. We will support your company through the transition. We start by creating the perfect conditions to allow change to happen effectively, with full engagement from your staff and stakeholders. We then guide the business through the process, making the necessary adjustment to maximise performance in the new chapter.
Financial consulting
Achieving an MBO requires funding, especially if you are looking to exit with a fair price for your efforts. Examples of financial options include:
- Commercial funding
- Equity
- Mezzanine solutions
- Seller financing
We help you to raise the finance to complete the transaction with numerous funding sources in our network, spanning the areas of debt and equity.