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Management Buy Out is the term given where an established business is sold to the existing management team. Whilst historically this applied to large companies seeking to dispose of non-core activities, more recently it has become the common exit route for the owner manager who is willing (at a price!) to pass the business on to the people who have helped make the business a success. This ensures that the business continues as an independent company providing job security for staff.

The existing management are often highly motivated and obviously knowledgeable about the business. We are always impressed by how quickly they can develop as a team and take ultimate responsibility for the business.

Occasionally the management team identifies a weakness in its skills, which can be filled by someone joining the management team from outside (Management Buy In).

Ashgates Corporate Finance has advised many management teams through the MBO process assisting with the preparation of the business plan and forecasts, securing the necessary finance (whether this be bank and/or venture capital), negotiating with the vendors and being the lead advisors driving the transaction to a successful completion.