Spectrum has extensive experience of completing successful MBOs. Whether management are acquiring from a corporate shareholder or a private owner, we have in-depth experience of the full process from inception to completion. The team have advised on all aspects of MBOs including advising management buy-out and buy-in teams, raising equity and debt funding for MBOs, advising private equity investors through competitive auction processes and advising owners on selling businesses through MBO/MBI transactions.
The team also has experience of supporting MBOs as principal lender and even participating as management in MBOs. This breadth of experience gives us a unique position in the market place, an understanding of the perspectives of all participants and therefore an ability to provide the most comprehensive advice to the management teams we act for.
We start by forming an understanding of the team's objectives and in gaining a comprehensive view of the business, its primary markets and key drivers in order to be able to present the business in the most attractive light to potential funders.
We will hold initial discussions and workshops for management teams on what a buy-out is, how it works and what it means for them. We will advise them on the full process of an MBO from initial concept, negotiations with vendors, researching and selecting appropriate funders, both bank and private equity. We will also use our knowledge of the process to assist in the preparation of a detailed business plan, financial model and management presentations for funders. We remain closely involved throughout the project, including advising all the way through financial due diligence and legal negotiations with the vendor and other parties.
When assessing which private equity funds to approach we will use our knowledge of the funds, their investment strategies, sector expertise, cultures and credit processes/deliverability to identify those most appropriate for the transaction. We then run a covert auction to get the best possible deal for the management team, taking your objectives and future strategy into account i.e. buy and build/roll-out.
It is absolutely critical for the success of the MBO and to achieve the best deal, that management appoint an experienced corporate finance team right at the outset. We see our role as being your closest advisor, adding value throughout the process, right up to completion. Our track record in completing successful MBOs is second to none.
"Spectrum were the perfect partner for Virgin Wines and we couldn’t have achieved our management buy-out without them. From the very start, right through to completion, they guided us through every aspect of the process, introduced us to the right investment partners and were calm, supportive and professional . We also developed great relationships with the team personally, meaning we had a lot of fun as well as working incredibly hard to achieve the outcome we all desired. I wouldn’t hesitate in recommending Spectrum to anyone who wants a top corporate finance team to help and support them through any acquisition process."Jay Wright, CEO, Virgin Wines