Do you love your job and have great ideas, strategies and tactics to grow the profits even more? If it is a great company with an owner nearing retirement age then you have a greater chance of success.
Would you like to buy the company – if only you could afford it?
Well, despite a large gap between what the company is worth and your own financial resources, there are real, proven solutions that you can use.
As a key management employee you have an inside advantage that no external buyer would have. You already know and understand your employer and he/she knows (and hopefully likes) you.
To achieve a Management Buyout (MBO) will require significant analysis, preparation and negotiation. You may end up with less than 100% ownership because the people who assist in securing you the necessary finance will probably require a certain percentage for themselves. But you can often secure control of the business for far less investment than you think. EurekaMax and Ascend have the experience to assist you.
How Do You Proceed?
- You’ll need to understand what makes a successful MBO.
- You’ll need to determine the value of the business.
- You’ll need to identify possible partners to assist you in your acquisition.
- You’ll need to negotiate with one or more finance providers to borrow the necessary funding.
- You’ll need to obtain the support of other key management.
- You’ll need to prepare business plans. strategic overview documents and financial plans.
- You’ll need to be able to negotiate at “arms length” with your employer, removing all emotion, to secure the best deal for you both.
- You’ll probably need to be able to persuade the current owner to leave some money in the business for a while (known as vendor finance or seller finance).
- And you’ll need to be able to provide your employer with a 100% guarantee for that vendor finance.
- And more…
I have a network of investment groups who prefer to invest ONLY in MBO’s. They do not want control of the business, they all have access to significant finances and they’re willing to consider any industry.
It’s not as hard as you expect when you know what you’re doing and when you know the right people, and the rewards can be huge. If you’d like to discuss the possibility of buying the company you work for in Rockingham or Kwinana, call Martin Dabb ph; 0458 290 100 (Perth) or Email Me to discuss any issues or questions.