Management Buy-in & Management Buy-out

Anthony Lanford has in the recent years closed a substantial number of deals in Europe, where either the company’s existing managers have taken over the company completely or partly (Management Buy Out) or a new management has taken over the company (Management Buy In).

A great number of companies face either a succession or are considering a disposal in the coming years and in this context MBO and MBI will be increasingly relevant and a possible alternative to an industrial sale. 

A management buyout (MBO) is a type of business acquisition in which  the managers of a company purchase the business from the current owners or parent company. MBO’s can be structured in a number of ways. However, many transactions use the  leveraged buyout  model.

Leveraged buyouts are often used since few management teams have the financial resources to buy the target company outright.

They need external financing to facilitate the purchase, and are often interested in leveraging some of the assets of the target company.