Read How an MBO Empowered a Construction Company
A construction company with a strong emphasis on its identity and culture approached us seeking guidance on their Management Buyout (MBO) initiative. As a team of four directors and shareholders, they were considering various options for the company's future, but their priority was to ensure an internal transition that would preserve the hard-earned identity and culture. Recognising the potential in two account managers as potential buyers, they sought our expertise to facilitate the MBO process.
Initially, two account managers showed interest in the MBO, but one withdrew, leaving only one manager to pursue the opportunity. Despite the remaining manager's enthusiasm, they encountered various obstacles, including difficulties in determining the company's valuation due to outdated data. Our intervention involved conducting a comprehensive valuation analysis, providing an accurate starting point for negotiations. Additionally, securing funding for the MBO posed another significant hurdle.
By leveraging our network of finance brokers, expertise in constructing a comprehensive financial case, and collaboration with legal professionals, we successfully addressed funding challenges and navigated the legal aspects of the Management Buyout (MBO) for the construction company. Despite the cautious lending environment, we secured the necessary funding, enabling the MBO to move forward, resulting in a successful transition of ownership.
The MBO satisfied all parties involved, leading to a seamless transition of ownership. Under the new ownership, the company has flourished, overcoming industry uncertainties and gaining the confidence to pursue new projects, setting the stage for a promising future.
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