What is a MBI-Management Buy-In ?
A Management Buy In (MIB) happens when a Manager or Management Team has the necessary funds to take over the management of a company making them the new manager or management team. Click here to know more about what a MBI is.
What we can help you with is raising funds for the take over. We also assist you with choosing the right companies for take over. We can advise you on your business plan and have a in depth look at the legal and tax issues involved in the take over.
Some of the main questions we can answer for you are:
- Whether its best to acquire shares or purchase assets or activities?
- Which companies are viable candidates for a take over? (Industry and ‘target’ analysis).
- What are the best Negotiation Strategies for take over?
- Which Legal and Tax aspects should be considered?
- What financing alternatives can be made available to you and which of those to choose?
Below are some of the more common steps we take when proceeding with a Management Buy-In. However not every case is the same.
The 5 most common phases of the MBI process we go through are:
Phase 1: Preparation
Phase 2: Market Analysis
Phase 3: Negotiations
Phase 4: The transaction
Phase 5: Integration
And now we explain each of these stages in detail.
Phase 1: How we prepare for the Management Buy In
This phase is also divided in the following steps:
1.1: We get to know your background and your objectives;
1.2: We identify with your vision and strategy;
1.3: We find your ideal company;
1.4: We determine your requirements for financing your objectives.
Phase 2: We Start with Market Analysis
The steps regarding the market analysis are as follows:
2.1: A long list of possible candidates are put together;
2.2: We compare all the candidates and shorten the list based upon the search profile;
2.3: We agree on which candidates to approach;
2.4: We approach the candidates on your behalf (giving you Anonymity).
Phase 3: We negotiate
The negotiation steps are as follows:
3.1: We begin selecting the best companies at the best price.
3.2: We select the target for acquisition.
3.3: The target is valuated.
3.4: We negotiate the bid for takeover as well as other conditions.
Phase 4: Transaction
Next, is how the transaction takes place:
4.1: You give us the big OK for the decision to purchase.
4.2: The LOI (Letter of Intent) is signed.
4.3: We do the necessary Due Diligence. (investigate the candidate’s books)
4.4: We arrange the funds
4.5: The SPA (Share Purchase Agreement) is signed.
Phase 5: We get you Integrated
5.1: We help you build a relationship with your new employees.
5.2: We get the current management to help you with the transfer and integration by using their experience with the company and its employees.
5.3: Inform the customers of the change and expand customer relations.
5.4: Streamline the integration and save on costs.
CREF is proud to provide services to all European countries. We are highly qualified and more than able to assist you with any MBI.
Should you have any questions about our background do not hesitate to contact us.