Management Buy Out

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The immediate reward from a buy out is the simple satisfaction of being your own boss.  But improved company performance leads to more tangible rewards.  The businesses which Watersheds has helped to independence through a buy out have produced many millionaires amongst their former managers

You need to be fully prepared before talking to your employer.  We will help you work out a deal that is feasible and explain how it can be funded.   Without this, your employer may not take you seriously.  Our approach is focused.  We will value the business for you, work out the optimal structure, suggest the best funding options and talk through the practicalities.  Together, we can present a well thought out and credible proposal. 

It is often difficult for a management team to switch from employee, to purchaser, negotiating on equal terms.   By taking the lead in negotiations, we protect the management team from feeling conflicted, enabling you to maintain your relationship with your employer and continue to focus on running the business.

We will introduce our extensive network of funders who are actively looking to back such opportunities, providing solutions that are relevant, and meet our clients’ expectations.  We will help prepare a compelling business plan and generate competition between funders to get the best price.  This will substantially increase the chance of a successful MBO.

Watersheds are sufficiently confident we can do 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.  A failed MBO risks damaging the business and your relationship with your employer.  We invest time early in the process to flush out and resolve issues that might prevent the deal from happening.

The management team will need to invest up front, but the amount required will need to stretch but not distract them from the business.  Management’s contribution will be geared up to be worth several times its face value providing the opportunity to make a significant and life changing return on a modest investment.  MBOs are about making money.  Watersheds structure deals which enhance the potential value to our clients when they eventually sell.  We always strive to maximise our client's equity percentage.

Get in touch

For more information call us on Northampton 01604 660511 or Swindon 01793 719788 or Crawley 01293 804514

For more information call us on Northampton 01604 660511 or Swindon 01793 719788 or Crawley 01293 804514