Management Buy Outs
An MBO occurs when the existing management of business acquires all or part of the shares from the existing shareholders. If external management acquire the shares the term MBI is used. These types of acquisition present management with a number of challenges and professional advice should be sought before any approach to the existing shareholders is made.
We offer a full support role to management teams which may include the following advice / services during the transaction:
- Initial advice: we provide support at the initial planning stage of your proposal
- Tax planning: we can advise on tax-efficient structures for your investment in the target as well as tax issues that may affect the Vendor so that any offer is structured as attractively as possible. The initial tax planning is very important as it will affect your tax position when you exit the business
- Business planning: we can help you plan in more detail how the business will look following the transaction and how the new management team will function both for your own benefit and for funders who will need this information to assess your proposal
- Financial modelling: we can assist in the development of financial models to ascertain the funding requirement which will assist in fund raising
- The approach: once we have indicative financial support for your proposal, we can support initial negotiations to ensure the Vendor is comfortable you can deliver your bid and that under the circumstances an MBO/MBI represents an attractive form of exit
- Heads of terms: we can document the agreed terms so that both sides are clear on the deal subject to fund raising and due diligence and can agree exclusivity arrangements which include a timeframe to complete the deal
- Closing the deal: management of the funder / your due diligence negotiation of the acquisition agreement / funder documentation and working with your lawyers and other advisers until the deal is completed;
- Post deal support: dealing with post deal issues such as completion accounts, calculation of deferred consideration as well as monitoring progress and providing continued support.
An MBO / MBI transaction represents a significant challenge for the acquiring management. As part of your team, we can provide the necessary assistance to give you the best chance of a successful outcome.
Practical Advice, Assistance and Preparation of Cash Flow Forecasts and Funding Structures
Cash flow forecasting and management are key to any business both for its survival and expansion. Our experience in creating structures and cash flow forecasts will enable us to assist in creating the bespoke cash flow forecasts your business will require.
Assistance with Business Plans Preparation, Presentation, Forecasts and Structures
Based on our work both within and advising businesses we can assist your organization with the preparation and presentation of practical and effective business plans for internal and external use.
Business Risk Services
Managing risk, demonstrating performance and having effective management systems are all key to an organisation’s success. Sara Coopers’s objective risk assessment helps you spot and avoid potential problems. We can advise you on your approach check the reliability of your systems and evaluate the performance of your team and organisation. We will work closely with you to achieve practical solutions that are focused on your objectives and ambitions. Our internal audit of your organisation provides not just a quick fix but a long-term supportive relationship that generates lasting value for your business.
- Risk: Quite simply, we help you to avoid learning lessons the hard way. You can draw on the experience of many different organisations, to apply this wealth of knowledge and best practice to your specific case to help you identify and manage your risks successfully.
- Assurance: We will test the operation of key controls and ensure your compliance with key procedures. Our service also gives you an evaluation of your business plans and more.
- Improvement: When we advise you – e.g. on control design and implementation, governance or efficiency – we find the best way to do it within your circumstances. We do not offer off-the-shelf solutions, as these can never match those that are made to measure.
- Investigation: When systems, processes or units do not work as intended, we focus on finding the root causes of the failures. In other words, rather than apportioning blame, we discover what it was in the system that allowed an error to arise and cause damage. This approach helps to prevent such problems recurring.
Due Diligence Reviews
We have a great deal of experience with technology, renewable energy, asset management wholesale and retail distribution of Oil Products.
We understand the need for swift and efficient services, reporting to tight deadlines and complete security and confidentiality at all times. We take responsibility, offer honest, experienced advice and have a strong, reliable history in this area.
Our current client list has grown 100% from referrals from other satisfied clients because we deliver, continuing to add value after the initial deal is completed including advice on improving existing financial systems.
Unlike many due diligence providers, we can tailor a solution to meet your specific requirements, even if the amount invested is relatively small – we have conducted due diligence reports for investors investing as little as £50,000 and as much as £50 million.