MBO- / MBI-transactions


Under what circumstances can a MBO/MBI be pursued?

A Management-Buy-Out (MBO) respectively a Management-Buy-In (MBI) is an effective instrument to enable a succession planning transaction or a carve-out of a self-sufficient business unit.

Which conditions must be met prior to starting an MBO process?

For any MBO process, it is crucial that your company has a strong and experienced management team in place, which already possess a track record in their current function.

Which are the crucial challenges in an MBO/MBI transaction?

In most cases, management has not sufficient equity to fund a MBO/MBI transaction independently. Therefore, it is a key challenge to find the right equity- and debt-financing partner. 
Due to the fact that the current shareholder, the management and the financing partner have different objectives, there is a potential conflict of interest, which needs to be handled carefully. 

Hitz & Partner is aware of the major challenges, which a MBO/MBI transaction includes:

  • Provide an independent view on valuation and run sensitivity analysis
  • Add credibility to funding proposals
  • Prepare you for meetings with debt/equity providers
  • Negotiate with vendors and finance providers on your behalf
  • Assess the reasonableness of all commercial terms
  • Project management of the entire process

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