You are in a job you love and want to invest, you think the owner or shareholders would be open to an offer and you have always dreamed of owning your own business. You hope to build the company from strength to strength over the next few years and then either float on the stock market or sell to fund the lifestyle of your dreams.

It is easy to picture the large house with a tennis court and swimming pool or the Porsche on the drive or perhaps a second home in the Bahamas.

Your challenges today are the commercial realities of implementing the Management Buy Out (MBO) which is the first crucial step if your dreams are to be turned into reality. You know your management team is excellent at what they do and you have every confidence that you can grow the business with their help. However, you have no experience of a MBO and have no real idea what is involved, how much to pay or where to find the finance.

Ask yourself a few questions:-

• Why do I want to buy this company?
• Is it a case of the devil you know?
• How good is my management team and are they capable of taking this step?
• What’s in it for the current owners?
• How much is it worth?
• Where is the money going to come from?
• How do I ensure the company doesn’t reduce in value during the MBO process with the management’s eyes off the ball for an extended period?
• How do I avoid restricting growth because of cash flow issues?

Few good managers are experts in MBOs, most people will only do this once in their life. You know it is essential to plan, prepare and execute effectively but relying on your own management skills in an area where you lack experience could spell disaster.

A successful MBO can give existing owners the financial freedom they crave and the new team an opportunity to fulfil their dreams.

Partnering with a team who understand SME finance in depth through 30 years experience could be just the missing ingredient you need to make the dream a reality.

Boldoak, which specializes in supporting the sales strategy in SMEs, has partnered with The Mercantile Group to be able to offer new and existing clients the expertise to execute successful MBOs to everyone’s satisfaction.

For further information contact
Babs Moore
Tel 01480 383676
Babs.Moore@Boldoak.co.uk