CM Consulting LTD

Management buy-out
Management buy-in

MBI & MBO | Strategic succession options for a successful company handover

Advantages of internal succession (MBO)

MBO ensures continuity through trusted managers who know the company inside out and can develop it further.

Using external expertise (MBI)

MBI brings fresh perspectives and new expertise to the company, ideal for sustainable growth and innovation.

Explore financing options

Our experts support you in developing and implementing a solid financing strategy for MBOs and MBIs.

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MBO & MBI

Introduction
The management buy-out (MBO) and management buy-in (MBI) are proven strategies for company succession. In an MBO, the existing management acquires the majority or all of the shares in the company, while in an MBI external management takes over these shares. Both methods offer different advantages and challenges and are important alternatives to internal family succession or external sales.

What leads to MBO or MBI?

Typical initial situation
Owners and managing directors of family businesses are often faced with the challenge of not being able to find a suitable successor within the family. In such cases, MBOs and MBIs are strategic alternatives. Employees from the management level or external management can take over the shares and continue the management.

The company value counts on these occasions

  • MBO (management buy-out):
    The existing management, which is not part of the entrepreneurial family, takes over the company.
  • MBI (management buy-in):
    External management acquires the shares and takes over the management.

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Our offer for MBO and MBI

Support with succession

Generational change in medium-sized companies is becoming increasingly difficult, as there are often no suitable successors available within the family. MBOs and MBIs are therefore becoming increasingly relevant.

  • MBO: Takeover by one or more persons from the existing management level.
  • MBI: Takeover by experienced, external management.

Services to support your MBO and MBI

  • Strategy, procedure and time planning: We help you develop a comprehensive strategy and plan the handover process in detail.
  • Checking the transferability and risk assessment: We analyze the general transferability of your company and carry out a thorough risk assessment.
  • Researching and approaching suitable external successors (MBI): We identify and contact potential external successors.
  • Company valuation and purchase price indication: We carry out a well-founded valuation of your company to determine the fair market value.
  • Preparation of sales documents: We create a brief company profile and a meaningful information memorandum for discussions with MBO or MBI candidates.
  • Financing planning and capital procurement: We support you in planning financing and procuring the necessary capital.
  • Support in contract and financing negotiations: We are at your side during negotiations and support you in drawing up and reviewing the necessary contracts.
  • Preparation of central documents: We help you to compile all the necessary documents.
  • Review of contracts: Our network partners in the areas of tax and law review all relevant contracts.
  • Communication measures: We develop internal and external communication strategies to make the handover process transparent and efficient.

 

CM Consulting LTD

The MBO and MBI process
Succession planning
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Evaluation of possible successors
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Company valuation and purchase price indication
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Creation of sales documents
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Due diligence
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Final contract negotiations and financing of the purchase price
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Signing of the purchase agreement and completion of the transaction

Succession planning
Evaluation of the successors
Company valuation
Sales documents
Due diligence
Contract negotiations
Completion of the transaction

Succession planning

As part of succession planning, it is determined that an MBO or MBI is the best option for continuing the business if no family-internal succession is possible.

Evaluation of possible successors

A potential managing director and buyer is identified through structured discussions with interested managers from your company or the search for an external managing director.

Company valuation and purchase price indication

We carry out a company valuation in order to determine a well-founded purchase price indication.

Creation of sales documents

We create a brief company profile and a meaningful information memorandum. At the same time, we check the potential buyer’s financing capability and explain financing options.

Due diligence

A simplified due diligence (for MBOs) or a more extensive due diligence (for MBIs) is prepared and coordinated for the potential buyer.

nd final contract negotiations and financing of the purchase price

The remaining elements of the contract are determined with binding proof of financing from the potential buyers.

Signing of the purchase agreement and completion of the transaction

Once the content of the contract has been mutually agreed, the contract is signed and the shares are transferred.

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Your benefit

Alternative to succession

You have found a reliable alternative to family succession and secured the continuation of the company for the future.

Flexible exit options

You can decide yourself at any time whether you want to leave your company immediately or only gradually.

Continuity and commitment

The future management and participation of the buyers guarantee maximum commitment and a risk-conscious continuation of the company.

Stability

Stability for employees, customers and suppliers. The implementation of MBO/MBI ensures continuity in the company for all parties involved.

Questions & Answers