Management Buy Out & Management Buy In
An MBO or MBI may be a solution for the family succession. In this case the active shareholders buy out the non-active shareholders or the family sells the company to the management, possibly with the financial support of a private equity investor.
An MBO or MBI financed with loans is a leveraged buy out or leveraged buy in or LBO and LBI.
OMNICAP can also advise on MBOs and MBIs in a non-family context.
An MBO and MBI require a specific approach because of the various interests of the parties involved. Following parties may be involved:
- Existing shareholders who sell and definitely exit the shareholders structure
- Existing shareholders who sell and repurchase shares of the company in the MBO
- Existing managers (MBO) or external managers (MBI) that buy and for whom mechanisms are often developed so that their percentage of shares or exit amount depends on the future realizations
- Private equity investors that buy shares in the MBO
We have experience with MBOs and MBIs in familial and non-familial context, both on the part of the buyer, seller and/or management.