The Why:

Management Buy Out or Buy In transactions are common place in the United Kingdom, with anecdotally 30% of private sales comprising a Management Buy Out or Buy In transaction. In other countries, Management Buy Out's tend to be readily dismissed by Vendors as "complex, expensive and not financially attainable for their management team".

At Ennovate Corporate Finance we beg to differ with this entrenched mindset and respectfully suggest the MBO or MBI transaction for Vendors and Managers of small and medium sized enterprises offers superior value and benefits to key stakeholders than the conventional trade sale or shut down business exit scenario.

Until now...

Ennovate Corporate Finance has introduced the pre-packaged Management Buy Out© transaction to the marketplace to make available the compelling business synergies of an MBO to the Vendors and Managers of small and medium sized enterprises of at least $1 Million in Enterprise Value.

No longer is the MBO/MBI the preserve of multi-million dollar Private Equity sponsored mega deals, Ennovate Corporate Finance now introduces the turn-key, pre-packaged Management Buy Out© transaction to the broader business community.

In summary the pre-packaged Management Buy Out© transaction offers the following:

Benefits to Vendors:

• Ability to realise Headline Sales Price
• Simplicity and transparency of financial structure
• Opportunity to reward loyal and capable management with ownership stakes
• Retention of confidentiality by avoiding the need for competitors to pour through business accounts and operationally acquired knowledge and secrets
• Completion of a turn-key, pre-packaged MBO© transaction within 8 – 12 weeks (typical transaction length assuming motivated Vendor, Management Team and agreement on acquisition price and terms)
• Engagement of an external Project Manager to coordinate and manage the transaction end to end
• Lead Advisers aligned to the successful completion of the transaction through success fee structure i.e. absence of hourly or hidden charges

Benefits to Management:

• Opportunity to step up into Ownership stakes and grow the business into the next phase of development
• Operational and Executive Control
• Funding structures that require minimal levels of management equity
• Ability to significantly grow wealth creation possibilities

The What:

Specifically, Ennovate Corporate Finance’s principal role is to:

• Establish key stakeholder needs, objectives and management capabilities
• Determine the feasibility of a Management Buy Out [MBO] transaction as an alternative to other business exit strategies through the use of innovative transactional structures
• Facilitate an independent and robust Valuation of the business
• Develop and formalise a compelling MBO proposal for Vendor and Management
• Draft and formalise Heads of Agreement for Vendor and Management
• Assist with the preparation of a business plan and funding documentation
• Identify, approach, and source funding capital for the preferred structure
• Referral of specialist advisory work for example due diligence, tax and legal advice to appropriately qualified and independent Professionals
• Project manage the transaction, end to end to ensure completion in full, on time

The How:

The pre-packaged Management Buy Out© Stages [High Level]

	Vendor contacts Ennovate CF to discuss MBO feasibility; Options developed; a unique proposal is developed for the Vendor
	Vendor gives "go or no go" decision; Ennovate CF seeks signed Engagement letter from Vendor setting out terms
	MBO proposition presented to Management Team for review and consultation; Independent Due Diligence and Valuations conducted; Signed Heads of Agreement achieved by both parties; Advisers appointed
	Sale and Purchase Agreement prepared and signed by Vendor and Mgmt. Team and their advisers; Transaction Completed.
2-3 Months (Typical) Deal Cycle, end to end