Things to consider before starting a management buyout
There are many things that may be concerning you about a potential MBO. The following are some of the issues that will be raised and some of the answers:
How do you make the first approach? And, who should do it?
What is the company worth?
How much should you pay?
What percentage of the company will you get?
How much money must you personally invest?
Should I do a secondary buy-out?
Tell us briefly about yourself, and about the industry, sales, and profits of the business you would like to buy and who owns it now. We will tell you if we think there is a good chance of you being able to do a deal. If we think it is a really good opportunity we will arrange to meet with you as soon as possible.
You can view this short video on structuring a buyout deal - and then call Equity Ventures.
What is a company worth in a management buyout?
If you want to try a quick company valuation now online just click Quick Business Worth
If you want a more detailed model of how an MBO can be structured click MBO buyout business valuation to see what a business is worth and how to arrange the different finance layers of an MBO.
Variations of this model have been used by over a hundred companies, venture capitalists and banks, including the Bank of England. You can ask us to talk you through the steps of using this spreadsheet model if you are serious about doing an MBO or other venture capital type transaction. Or you can ask us for a bit of one to one help in using the model as it requires a bit of financial and spreadsheet knowledge.