A management buyout or MBO involves the people who manage a company bringing their resources together in order to acquire part or all of the company that they work for. Before you go ahead and attempt an MBO, you’ll have various things to consider. You’ll have to find out whether the necessary funding is available and be truly confident that you can push the business forward. Everyone involved should agree on how the MBO will be funded, and the team buying out the company should have all the skills required to deliver success. In most cases, management teams need to seek out external funding when they want to purchase a company.

Various forms of finance may be available to you, and these include asset finance, high street lending, private debt and private equity. It’s also somewhat common for vendor loan notes to be used.