MBO: Self-funding £1m deal allows owners to retire.
We have successfully advised the business owners of an engineering firm on its £1m buy out by the existing management team. Our team were initially approached by the business owners for exit planning advice. The owners had successfully built up an engineering business over 20 years and were now considering options for the business as they approached retirement. The owner felt strongly about business continuity post exit and had never considered a sale to existing management within the business. The management team had a strong case for taking over the business – not only did they understand the detail of business operations and its clients, they were also backed by an ex-FTSE 100 Chief Executive.
I acted as the lead advisor, supported by the Whiting’s team, advised on the mechanism to achieve the MBO with the consideration being generated out of future profits. The Whiting’s team also ensured that optimum tax treatment was achieved for the sale.
The MBO was successfully completed with shareholders achieving a great exit option and the new management team excited by the future potential of the business