MBO, MBI, BIMBO
Over 600 UK MBOs each year - is yours the next one?

You are in a management team and want to gain a once-in-a-lifetime opportunity to have a significant equity shareholding in a business. That business shows growth potential and the opportunities for significant capital gain within a three to five year time-scale.

You should consider buying this business through an MBO, MBI or a BIMBO. We can help you achieve this goal.

MBOs, MBIs and BIMBOs are all similar in that a management team is buying a business with the assistance of financial backers. Normally, backers like to invest in a cohesive management team that has a good working track record.

Which one is which?

MBO

MBO stands for management buyout. If the existing management want to own the business that they run and are able to raise funding to match the current owner's aspirations, then they should consider an MBO. The funding is usually from private or venture capital supported by bank finance. An MBO is considered the least risky option.

MBI

MBI stands for management buy in. If the business needs a complete change in management then an MBI is preferable. Once again the funding is usually through private or venture capital supported by bank finance. An MBI is probably the most risky route.

BIMBO

This is a compromise between an MBO and an MBI. In a BIMBO (Buy-In Management Buy-Out) the existing management is largely retained, joined by some new key executives. All parties participate in the equity, financed possibly with some external funding, either private equity or bank finance. These transactions are technically complicated, time consuming and have an element of risk for the management team if the financial planning is not in sync with the business strategy.

We at Hyde Corporate Finance will assist you to prepare a business plan which sells in the investment opportunity and also help you through the myriad of issues and problems that will inevitably challenge the management team including valuation, negotiations and fund raising.

If you would like to learn more or to arrange a free initial meeting, please call Malcolm Coomber on 020 7292 7800 or email .

Hyde Corporate Finance is part of the Hyde Partnership, providing joined up advice across consulting, accounting, tax and marketing issues.

"They are down to earth, approachable people who were always available when we needed them and their advice and commitment played a key role in getting the deal done successfully."

Martin Urquhart, Tri-Q

"Our bank recommended that we work with Hyde on the management buy-out of our business. We found them to be down to earth, highly focussed and always on hand to run through the details. They have a real flair for negotiations which was invaluable in getting the right deal for us."

Paul Nattrass,
Robore Group