Management buyout (MBO)
Your business in trusted hands
In a management buyout (MBO), you sell your company to your own management. This is often a good option if you want your company's legacy, identity, accumulated knowledge and expertise, brand awareness, customer base and employees to be preserved as much as possible.
Management buyout
in short
In a management buyout, you sell your company to the incumbent management. This is a logical step when looking at business succession because you have built your company together with a strong management team and you know the company inside out. The continuity of your business is reasonably assured and management will naturally step in as the new DGA. With a new impetus and often new financing, room is created to commit to change, growth and innovation. The process of a management buyout can be quick, but a period of about 6-9 months may be needed to get all the ins-and-outs and legal and financial issues right for both parties.
"A strong management team already knows your business inside out."
The process of a
natural business succession
A well-nigh natural succession
A management buyout is a natural way for business succession. After all, you have built your company with a strong management team that knows the company inside out and helped build it. So it makes sense to consider business transfer to your MT. Are there people in your company who stand up and are interested in acquisition? Do the incumbent managers have enough entrepreneurial blood? And is it financially manageable? The business transfer doesn't always have to be about the highest price. You want to help your successor(s) in the saddle, but of course you also want to monetize some of the accumulated wealth. A decision for a management buyout is therefore often a mix of price, feeling, click and favor factor.
"Increased arbitrage literally turns on the multiplier"
How long does an MBO process take?
A management buyout can happen quickly. The intended buyer is already there, so is the knowledge of the company, and you, as the selling entrepreneur, are confident. It can take about 6-9 months to sort out all the ins-and-outs and the legal and financial issues.
Financing a management buyout
An incumbent management does not simply have the capital available to take over your business. Because your company already has a proven existence and earning power, investors and bankers are more inclined to make an investment or provide a loan.
Regional development companies (ROMs) can also be an interesting solution to a financing issue. ROMs have capital available and are keen to keep jobs in the region. The new entrepreneurs can often also use the participation by a ROM in part to invest in further growth and innovations.
Finally, you as a seller can also take on the role of capital provider. This will involve other interests, because the loan you provide is 'risk capital' and you will have to assess it as such. You need a longer horizon for this and confidence in the management and the company you are transferring.
What do we want to do for you?
Hogenhouck is an entrepreneurial and independent M&A firm, where you as clients always come first. Every entrepreneur, every business and every transaction is different; hence our credo "Business as unusual. As M&A specialists, we work on works of life built with blood, sweat and tears. Our mission is to move the people behind these achievements forward, both professionally and personally. That is what drives and inspires us. Because at the bottom line, for us, it's not just the numbers that count.
You are at the center of everything
An approach that leads to success
We think a lot in the long term. You don't work with us for a quick deal, but to make a good step. 'What is that step and when and how should you go about it?' That approach is why our percentage in closings is very high. We're really there for you. In the process we enter into, we pull together as a team. We complement your knowledge and experience with our knowledge of markets, market players, negotiations and an M&A track record of over 15 years. We guide you through the world behind the numbers you don't know, where everyone wants something from you, and put you in the best possible position in buying, selling and funding.
