How management buyouts can be facilitated by specialist lenders

Teams looking to take the helm via an MBO have a variety of funding options open to them. Sandra O’Connell reports

Some specialist lenders can offer dynamic and favourable terms, in some cases structuring loans for management buyout (MBO) teams on an interest-only basis, with the balance payable at the end of a term.

Management buyouts should be a win-win all round. Owners tend to like them because they can exit their business safe in the knowledge that the team who drove it to success will continue to do so.

For the management team, it’s a chance to become their own boss and, hopefully, secure their own financial future.