Management teams often have the misconception they can't afford to buy-out their business owner when the opportunity arises. We can support management teams within a business to raise funding to make a management buy-out (MBO) happen.Book a meeting
We will assess if financing your MBO is feasible and determine how much debt or equity funding you could raise.
We will assess the most viable debt or equity options based on the funding capacity of the management team and the business. We will advise on the most suitable solution among all available options.
We will drive a competitive process in the funding market to find the most suitable solution among our network of 700+ lenders. We will advise on the varying criteria different lenders have for their MBO funding solutions.
We will approach lenders on your behalf. Knowing what lenders are looking for and pitching to them in the right way can avoid wasted time, conflict with vendors, reputational risk and losing the MBO opportunity
As well as raising the funding, we can help the management team complete the MBO transaction in a timely and seamless manner.
We can help growing businesses raise funds against their future cashflows. This is vital for modern businesses that are light on tangible asset security.
We deliver truly competitive “all-of-market” funding solutions offering the best structures, pricing and financial partners for your needs.
We will find the optimal blend of funding solutions from both traditional banks and alternative lenders.
Why Shaw & Co
Our highly talented people are creative, innovative and thrive when faced with a deal-making challenge. It's no surprise that we make deals happen and turn your ambition into a greater outcome.
Fees & charges
Our objective is to ensure that our fee more than pays for itself from the value we create for you and your business.
No, we are not brokers. We are professional advisors. Whilst our role often involves the introduction of parties to a deal, our value is much greater than a simple introduction service. We support you in the development and articulation of your business case, the negotiation of terms and the management of completion - all of which materially improve the end result, adding significant value to your transaction.
Corporate finance transactions are not an everyday activity and it is unlikely you will have the up-to-date knowledge you need in your team to navigate a deal. We provide expert advice when you need it to get the right solution for you.
We have specific sector knowledge derived from many years of collective deal making experience. However, we pride ourselves on the diversity of sectors we work with which challenges us to think creatively. This creative and challenging approach brings huge value to our clients when helping them to build robust business cases.
On average this can take between 6 weeks and 16 weeks depending on the complexity of the deal and the quality of information available.
Minimum tends to be around £1.5m with no pre-determined maximum.
Certain fees remain payable on most transactions like commitment fees which tend to equate to approximately 10% of the overall success fee. Success fees are only payable on successfully completing the transaction.
Debt is often preferred as this will not dilute the ownership of incoming shareholders enabling them to take full control without interference from external equity who usually require a board presence. However, there are occasions when the level of debt sought might be considered too onerous for the business or the controls placed on the business over future cash distributions (e.g. dividends) may be viewed as unreasonable.
There are occasions when equity is advantageous should the level of debt sought be considered too onerous for the business or where there is a desire to have board input from equity investors or indeed a recognition that a 'follow-on' investment may be required to deliver a growth strategy. Equity investments do however come with strings attached and failure to deliver on plan may lead to the equity investor taking control, amongst other remedies they will have available to them.
Funders will need to know the MBO team has relevant expertise to continue running the business successfully and is also prepared to make a substantial personal financial investment in the transaction. Many high street banks are cautious about funding MBO‚Äôs with debt structures that are often very short in nature thereby restricting the amount that can be borrowed. However, the alternative markets, which continue to evolve, do still support such transactions at much higher leverage allowing the exiting shareholders to maximise cash out.
We have extensive experience in leveraged transactions and run a whole of market competitive process to identify the best form of investment and ensure the business, and management team, are presented in the best possible light.
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