Management Buyout (MBO)
If you’re part of an internal management team looking to finance a Management Buyout, you’ve come to the right place. A range of business finance options are available to facilitate the sale and purchase of the company you’re acquiring.
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What is a Management Buyout?
A Management Buyout is when a company’s existing management team purchases all (or part of) a company they manage. It can be an attractive option to the seller because the management team already understands how the business operates, so is well-placed to ensure its continued success and growth.
How does a Management Buyout work?
Although you may be expected to make a financial contribution to the purchase of the company out of your own pocket, it’s likely that a third party funder will contribute the majority of the finance for the Management Buyout. Finance options include:
Asset finance – you can release cash from the assets the company owns (such as property or stocks) and use it to fund your purchase.
Term loans – alternative lenders can provide a cash flow term loan for up to 5 years to help fund your MBO. Receive a sum and pay it back in instalments with interest.
Mezzanine finance – mezzanine finance enables you to “bridge the gap” between the funds you’ve raised and the company’s purchase price.
Management Buyout - Features and benefits through Funding Options
Secured and unsecured flexible finance options available subject to eligibility
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Financial product information
Representative example*
7.63% APR Representative based on a loan of £50,000 repayable over 24 months. Monthly repayment of £2,252.94. The total amount payable is £54,070.56
*Some lenders may apply fees during the application process, please note that these are set and provided by these entities.
Annual Percentage Rate
Rates from 2.75% APR
Repayment period
1 month to 30 years terms