ls it the right time to initiate an MBO?
If you are thinking about initiating a management buy-out (MBO), then consider the common signals that can determine when it's the right time.
- A parent group refocuses its activities, making a subsidiary non-core
- A subsidiary becomes non-core when a takeover or disposal by a parent group leads to a change in focus in core activities
- A parent group itself is taken over and the new owners consider a subsidiary as non-core to the group's future plans
- The current owners are reaching retirement age or planning retirement, and there is no obvious family succession
- The current owners wish to sell the business but are worried about confidentiality and competitors gaining access to privileged information
- A subsidiary is restricted by controls imposed by its parent group (e.g. financial controls, geographic or operational constraints) and would operate more efficiently as an independent entity
- A company was originally the subject of a buy-out and the original investors are looking to exit via a secondary buy-out
- A company is wracked by disputes between shareholding directors, some of whom may wish to exit
- A buy-out could lift a parent group out of financial difficulties