{"id":465,"date":"2023-08-09T10:50:34","date_gmt":"2023-08-09T09:50:34","guid":{"rendered":"http:\/\/www.bishopsgatecf.co.uk\/?page_id=465"},"modified":"2024-01-10T10:15:03","modified_gmt":"2024-01-10T10:15:03","slug":"management-buyouts-and-debt-financing","status":"publish","type":"page","link":"https:\/\/www.bishopsgatecf.co.uk\/management-buyouts-and-debt-financing\/","title":{"rendered":"Management Buyouts & Debt Financing"},"content":{"rendered":"[vc_row type=”full_width_content” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” bg_color=”#ffffff” bg_image=”3532″ bg_position=”center center” background_image_loading=”default” bg_repeat=”no-repeat” scene_position=”center” top_padding=”13%” bottom_padding=”2%” left_padding_desktop=”8%” constrain_group_2=”yes” right_padding_desktop=”8%” top_padding_tablet=”40%” bottom_padding_tablet=”5%” left_padding_tablet=”4%” constrain_group_4=”yes” right_padding_tablet=”4%” top_padding_phone=”40%” bottom_padding_phone=”5%” left_padding_phone=”4%” constrain_group_6=”yes” right_padding_phone=”4%” text_color=”light” text_align=”center” row_border_radius=”none” row_border_radius_applies=”bg” zindex=”2″ overflow=”hidden” class=”border-inner-background bottom mobile-rounded-all bg-white” enable_gradient=”true” color_overlay_2=”#000000″ overlay_strength=”0.5″ gradient_direction=”top_to_bottom” shape_divider_position=”bottom” bg_image_animation=”none” gradient_type=”default” shape_type=””][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_column_text]\n

Management Buyouts & Debt Financing<\/h1>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=”full_width_content” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” bg_color=”#ffffff” scene_position=”center” top_padding=”2%” constrain_group_1=”yes” bottom_padding=”2%” left_padding_desktop=”8%” constrain_group_2=”yes” right_padding_desktop=”8%” top_padding_tablet=”5%” constrain_group_3=”yes” bottom_padding_tablet=”5%” left_padding_tablet=”4%” constrain_group_4=”yes” right_padding_tablet=”4%” top_padding_phone=”5%” constrain_group_5=”yes” bottom_padding_phone=”5%” left_padding_phone=”4%” constrain_group_6=”yes” right_padding_phone=”4%” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none” gradient_type=”default” shape_type=””][vc_column bottom_padding_desktop=”0″ right_padding_desktop=”10%” bottom_padding_tablet=”30″ right_padding_tablet=”0″ bottom_padding_phone=”30″ right_padding_phone=”0″ column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/2″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”advanced” border_right_desktop=”2″ border_right_tablet=”0″ border_right_phone=”0″ column_border_color=”#ab1e5d” column_border_style=”solid” column_padding_type=”advanced” gradient_type=”default”][vc_column_text el_class=”section-caption”]We are experts in both vendor backed as well as bank and private equity backed management buyouts (“MBOs”). Structured correctly, MBOs can be an excellent way to help you pass on the business to the management team.<\/span>[\/vc_column_text][vc_column_text]An MBO allows the incumbent management team to take an equity stake in the business.\u00a0 If the management team share the same vision as the current shareholders and both parties\u2019 aspirations are aligned, a transaction can be completed with relative ease.<\/p>\n

Bishopsgate can advise on the deal structure, valuation, feasability and the sources of funding.<\/p>\n

Funding can be sourced from vendors, banks, private equity firms, alternative lenders, or from the management team’s personal wealth. We are also well placed to advise clients looking to refinance existing debt facilities or raise new debt funding lines. Bishopsgate has long standing and established relationships with all types of funders and using our experience can negotiate to achieve competitive pricing and the very best terms.<\/p>\n

MBO transactions typically allow the vendor to extract a significant proportion of value today whilst maintaining a minority stake in the “newco” structure.[\/vc_column_text][\/vc_column][vc_column left_padding_desktop=”10%” left_padding_tablet=”0″ left_padding_phone=”0″ column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/2″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”advanced” border_left_desktop=”2″ border_left_tablet=”0″ border_left_phone=”0″ column_border_color=”#ab1e5d” column_border_style=”solid” column_padding_type=”advanced” gradient_type=”default”][vc_column_text css=”.vc_custom_1693399252449{margin-bottom: 0px !important;}”]\n

Key Considerations<\/h2>\n[\/vc_column_text][toggles style=”minimal”][toggle color=”Default” heading_tag=”default” heading_tag_functionality=”default” title=”Is the management team up to the task?”][vc_column_text]Management will be \u2018stepping up\u2019 and assuming control of the business and you will need to assess the following:<\/p>\n