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An MBO is the purchase of a company from the
owner by the management team. This is done
by forming a new company (Newco) that
purchases the shares of the existing
company.
Selling to the existing management is
regarded as a good way of securing the
future of the business. The benefits of an
MBO include:-
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The managers are buying an existing
business with an order book and
customers and a workforce they know
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The managers know their business and
their market
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The managers already work together as a
team
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Often the owner is keen to sell to
people known to them
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Often managers have clear strategies in
place to grow the business
It may be a once in a lifetime opportunity
for the managers in the business and it
essential for them to receive specialist
advice. We are able to arrange the funding
an effect introductions to business advisers
who will work with you to ensure a
successful transfer of ownership. |
