Management Buy-Out (MBO) / Management Buy-In (MBI)

There is often no successor for the business within the family.

In any of these cases, the solution may be a sale to trusted employees or experienced management team – a Management-Buy-Out (“MBO”). If an external management team is found to take over the business, this is referred to as a Management-Buy-In (“MBI”).

The seller and the MBO or MBI regularly are faced with the following questions:

  • What is the “fair” company value?
  • How may the purchase price be financed?
  • Should the transaction be structured as share deal or an asset deal?
  • How can the transfer be best structured for tax purposes for the seller and the buyer?
  • How can banks providing financing and, if applicable, works council be convinced of the feasibility of the MBO model?

Should the seller continue to be involved operationally or continue to hold an ownership interest?

Our services

  • Professional support and execution of the MBO transaction
  • All services are provided from a single source
    • Business analysis and company valuation
    • Creation of purchase price financing models (earn-out model, purchase price deferrals, lifetime annuities, usufruct agreements, etc.)
    • Professional negotiations between owner, MBO team, works council and banks
    • Favourable tax structuring of the transfer model

Benefits to you

  • Experience garnered from numerous MBOs
  • High probability of successfully executing the MBO