Management Buy-Out
Management Buy-Out (MBO) is the term applied when a business is sold
to the existing management. Often this occurs when large companies
seek to dispose of parts of the business or when the ultimate manager
is looking to retire.
The existing management are often people in the best position to take
the business forward as they have expert knowledge of the company and
its work-force. Strategically, they also present the most favourable
option to the existing owner, rather than selling to a competitor or
closing the business down.
The main problems for the buy-out team will be securing the necessary
finance. Management Buy-Outs (MBOs) often require more capital than
a start-up or expansion scheme.
Specialist Funding arrange structured finance for businesses within
the following areas:
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