After a successful career making money for other people, some Executives relish the opportunity to buy and run a business for themselves. Finding the right opportunity can be a daunting task and raising finance can be challenging. We source credible opportunities and deliver successful outcomes.
For an MBI to succeed there has to be a real synergy and relevance between the business being acquired and the buyer. Finding the right opportunity that “ticks the boxes” and that will be credible to funders is critical. We continuously talk to people who want to sell their businesses. Through this work, and our unique network, we are able to source opportunities that clients would not be able to find themselves. A large proportion of the deals that we complete are never advertised.
Funding MBIs can be difficult because new management coming in to a business can be perceived as high risk. Successful deals are generally those that are well planned and well executed. Funders need to see a well thought through and credible business plan and strategy. Watersheds will not only help you prepare this, but use our experience to rigorously test the commercial and financial assumptions so that your plan will stand up to scrutiny. This will significantly improve the chances of success.
Watersheds are sufficiently confident we can achieve this that we only charge a fee when we deliver a result. We do not charge up front fees or retainers. You will see from our past deals that we have a proven track record of helping clients to complete Management Buy Ins.
To complete a successful MBI, a meaningful amount of a client’s own equity needs to be invested to reassure the funders of their commitment. The client’s contribution will often be geared up to be worth several times its face value providing the opportunity to make a significant and life changing return.
Just completing a management buy in is not enough; ultimately, these deals are about making money. The price and structure agreed with the vendor is critical, as is the method by which the deal is funded. Watersheds work hard to structure deals that maximise the potential value to our clients when they eventually sell and ensure that they hold on to as much equity as possible by reducing the need for equity funding wherever possible.