Management buy-out financing

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.

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How we can help

ASSESS YOUR FUNDING CAPACITY

We will assess if financing your MBO is feasible and determine how much debt or equity funding you could raise.

ADVISE ON THE RIGHT FUNDING OPTION FOR YOU

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.

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GET THE RIGHT FUNDING WITH ACCESS TO 700+ funders

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 REPRESENT YOU TO HELP SECURE YOUR FUNDING

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

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WE OFFER A TURNKEY SOLUTION TO MAKE THE MBO HAPPEN

As well as raising the funding, we can help the management team complete the MBO transaction in a timely and seamless manner.

Additional benefits

cash flow lending

We can help growing businesses raise funds against their future cashflows. This is vital for modern businesses that are light on tangible asset security.

Competitive options

We deliver truly competitive “all-of-market” funding solutions offering the best structures, pricing and financial partners for your needs.

Best of both worlds

We will find the optimal blend of funding solutions from both traditional banks and alternative lenders.

LEARN MORE ABOUT SHAW & CO

Why Shaw & Co

WE MAKE DEALS HAPPEN

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.

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Fees & charges

COMPLETELY TRANSPARENT & ALIGNed With your GOALs

Our objective is to ensure that our fee more than pays for itself from the value we create for you and your business.

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FAQS

Are you a broker?

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.

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How can a corporate finance advisor help me?

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.

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Are you sector specialists?

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.

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How long does it typically take to secure funding for a management buyout (MBO)?

On average this can take between 6 weeks and 16 weeks depending on the complexity of the deal and the quality of information available.

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How much funding can you help me raise for a Management Buyout (MBO)?

Minimum tends to be around £1.5m with no pre-determined maximum.

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If you can't get funding for an MBO, do I still pay Shaw & Co's fees?

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.

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What are the advantages and disadvantages of raising debt to finance a management buyout (MBO)?

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.

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What are the advantages and disadvantages of raising equity to finance a management buyout (MBO)?

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.

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What things are often overlooked when trying to raise finance for a management buyout (MBO)?

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’s 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.

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Why should I use Shaw & Co to help me fund a management buyout (MBO)?

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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