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.
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.
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.
Secured and unsecured flexible finance options available subject to eligibility
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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
1 month to 30 years terms
Disclaimer: Funding Options helps UK firms access business finance, working directly with businesses and their trusted advisors. We are a credit broker and do not provide loans ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. We are also able to make insurance introductions. Funding Options may receive a commission or finder’s fee for effecting such finance and insurance introductions.
*Eligibility criteria apply - see Tide website for full details.
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