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Management Buy-In, the possibilities

Management Buy-In.jpg You have years of experience in management positions at companies in the SME sector. You have now reached a point that you want to use the knowledge you have acquired to set up your own successful company. Starting as an independent entrepreneur by taking over an existing company is called a Management Buy-In. Below we assess the Management Buy-In possibilities.

The Management Buy-In process

A successful Management Buy-In starts by determining the strategy. The first question is how the purchase should be structured. You probably already have a picture of the business you want to take over, for example:

The identity of the business.
The preconditions in the field of (production) location, size, specialist field.
Your role in the business.
Possibilities for financing the Management Buy-In

A purchase profile is drawn up which is based on your wishes and options as regards the Management Buy-In. This then serves as a basis for approaching parties. Once a suitable takeover candidate has been found, the information obtained will be used to carry out a valuation of the business, taking account of relevant market developments, as well as analysis of the payback period. These analyses provide insight into the Management Buy-In possibilities and serve as a basis for negotiations with the selling party.

All kinds of possibilities in a Management Buy-In

In recent years, Sophista has successfully supervised all kinds of transactions. Our experience has taught us that Management Buy-In offers possibilities for both the purchasing and the selling party. One condition that the seller may have is that the business continues to operate independently on the market even after the takeover. Often the Seller will then be prepared to finance part of the takeover in the form of a subordinated loan or an earn-out. What is more, the close ties between the parties, among other things, will often ensure proper supervision of the transfer of knowledge and of the business.