Management Buyout (MBO)

If you’re part of an internal management team looking to finance a Management Buyout, you’ve come to the right place. A range of business finance options are available to facilitate the sale and purchase of the company you’re acquiring.

Management Buyout (MBO)
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  • This quote won't affect your credit score
  • Dedicated Business Finance Specialist
  • Get access to 120+ lenders

What is a Management Buyout?

A Management Buyout is when a company’s existing management team purchases all (or part of) a company they manage. It can be an attractive option to the seller because the management team already understands how the business operates, so is well-placed to ensure its continued success and growth. 

How does a Management Buyout work?

Although you may be expected to make a financial contribution to the purchase of the company out of your own pocket, it’s likely that a third party funder will contribute the majority of the finance for the Management Buyout. Finance options include:

  • Asset finance – you can release cash from the assets the company owns (such as property or stocks) and use it to fund your purchase.

  • Term loans – alternative lenders can provide a cash flow term loan for up to 5 years to help fund your MBO. Receive a sum and pay it back in instalments with interest.

  • Mezzanine finance – mezzanine finance enables you to “bridge the gap” between the funds you’ve raised and the company’s purchase price.

Management Buyout - Features and benefits through Funding Options

  • Secured and unsecured flexible finance options available subject to eligibility

  • We compare 120+ lenders to find the right loan for you

  • A Corporate Finance Specialist will guide you through the process

  • It’s free, no obligation and won’t affect you credit score

Financial product information

Representative example*

7.63% APR Representative based on a loan of £50,000 repayable over 24 months. Monthly repayment of £2,252.94. The total amount payable is £54,070.56

*Some lenders may apply fees during the application process, please note that these are set and provided by these entities.

Annual Percentage Rate

Rates from 2.75% APR

Repayment period

1 month to 30 years terms

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