Management Buyout (MBO) Finance

Raise Management Buyout Finance

While a management buyout can represent an excellent opportunity for a company’s management team, often a substantial sum is required to finance the transaction.

The make-up of management buyout (MBO) finance can be quite complex and often consists of a mixture of debt and equity finance, with numerous parties involved.

At Hilton-Baird Financial Solutions, we can help you to raise the necessary funding for your MBO activity. With vast experience in the MBO/MBI arena, we have access to a wide range of lenders and investors to provide you with the right funding support for your acquisition and beyond.

To discover how our award-winning team can help you raise management buyout finance, call us on 0800 9774833 or request a call back.

Advantages of a management buyout (MBO)

Managers have an existing knowledge of the team and the company
Employees feel more secure being taken over by managers they know
Less disruption to the business, with client and supplier relationships easier to maintain

MBO finance options

There are a few options when it comes to securing MBO finance, but it can be a complex exercise. Here are some of the most suitable ways to raise the funding that’s required.

Asset Based Lending

Businesses can secure funding against assets on the balance sheet, known as asset based lending. This method releases funding against the value of invoices, stock, property, plant and machinery to provide the capital required to complete an MBO.

Find out more about Asset Based Lending

Equity Finance

Another way to secure management buyout funding is to offer shares of the company in exchange for capital investment. As well as finance, the company will also benefit from the investor’s experience and expertise, and investors are often interested in MBOs as they offer significant returns.

Find out more about Equity Finance

Business Loans

While management buyout loans can be harder to secure than other types of finance, they sometimes have the benefit of a low, fixed interest rate. This can be particularly beneficial during a management buyout as it allows you to plan ahead when it comes to your finances.

Find out more about Business Loans

Why use a finance broker?

A commercial finance broker can help you find the best management buyout finance options.

Taking into account your unique requirements, we can not only save you time in your search, but we can also identify the most suitable finance facilities according to your requirements.

If you’re planning a management buyout, give us a call on 0800 9774833 or request a call back to discuss how we can help.