A management buyout (MBO) is a transaction where the existing management team of a company combine resources to acquire some or all the shares of the business. This often involves the management team setting up a new company as the acquisition vehicle.
MBOs offer great opportunities for a business, providing management teams with the opportunity to buy the business that they have invested time and effort in helping succeed, and helping the sellers to achieve a smooth sale.
Types of management buyouts
There are many variations based on MBOs including:
- MBI, or management buy in, this involves a funder assembling a management team to acquire the target company (sometimes private equity providers favour this type of transaction).
- BIMBO, or buy in management buyout, is a combination of MBO and MBI.
- FAMBO is the term used for a family buyout (for example, where the second generation buys the business from the first generation within a family).
Our corporate lawyers have extensive experience in working on a wide variety of MBOs and MBIs and can assist whether you are looking to sell your company or you are part of the management team looking to make an acquisition.
To contact our Corporate team, please call 0333 323 5292 or fill in the enquiry form on his page and we will be in touch.
“They have a strong, multidisciplinary team and are flexible in terms of fee rates.”
The Legal 500
Sign up for our newsletter
Please fill in the form below to receive legal updates and seminar invitations from our expert solicitors – straight to your inbox.