We act on behalf of both the management team and sellers, along with investors for both buy outs and buy ins. Such buy outs and buy ins can take a number of different forms:
An MBO is the acquisition of a business by its existing management team, often funded via a lender, third party or a private equity investor (or a mixture of each). Following the acquisition, the management team own the business and remain in their existing roles.
An MBI is similar to an MBO, but the acquisition of the business is by a management group from outside of the business. This is often carried out when the existing management team do not wish to purchase the business.
An LBO may take the form of either an MBI or an MBO but it is financed by debt, rather than equity, from an investor.
- Buy in Management Buy Out (BIMBO)
A BIMBO is similar to an MBO but some individuals are installed by the private equity investor to work alongside the existing management team.
- Vendor Initiated Management Buy Out (VIMBO)
A VIMBO is an MBO initiated by the existing owner of the business to the management team (it is usually the management team who initiate an MBO) and the existing owner usually remains in the business with a minority stake.
- Institutional Buy Out (IBO)
An IBO is an acquisition funded by investors who then install a management team after the acquisition and grant the new management team a minority stake. This is often reserved for large or very high value buy outs.
An SBO occurs after any of the other forms of buy out have previously occurred. In an SBO the private equity investor who funded the initial buy out sells their stake to another private equity investor.