Management buy-out ("MBO")

The problem:

The sale of a business or business unit to its management raises great process risks to both the management and the owner. If not properly led, negotiations may end unfortunate for both sides: Management is representing both the owner and the buyer, and therefore is in a very critical conflict of interest. It has difficulties to defend their interests without appearing illoyal. On the other hand, the owner typically has less information about the true state of his company than the management and therefore is always in a defensive position, fearing not to know the whole value potential and all alternative sale options.

Our specific support for management buy-outs:

With our extensive experience as transaction advisers we can professionalize the MBO-process. As representative of the owner we ensure that the management complies with the agreed rules and that the process stays under control. Due to our own leadership experience we are accepted by the management as negotiation partner and therefore can ensure a balance between owner's and management interests, avoiding that the process "derails".