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Management Buy-Out (MBO): An Ideal Succession Solution from an Owner's Perspective!

Alain Friedrich
Written by
Alain Friedrich
10.6.2024

We are currently supporting an executive team in the acquisition of an owner-managed company. This is an ideal moment to highlight the (once again confirmed) advantages of an MBO from the seller's perspective:

  • Ensuring Continuity: The executives taking over the company are already deeply embedded in its operations. This ensures a seamless continuation and preserves the know-how.
  • Maintaining Independence: An MBO protects the legal and operational independence of the company, retains locations, and generally secures jobs.
  • Leveraging Trust: The existing trust between the seller and management facilitates the transaction and can efficiently resolve legal and financial challenges.
  • Utilizing Inside Knwledge: The management team knows the company inside out. This familiarity typically ensures a fair and realistic valuation, especially compared to external buyers who often demand risk discounts.
  • Preserving Confidentiality: Confidential information remains secure, minimizing the risk of information leakage to competitors.
  • Saving Time and Costs: The management's familiarity with the company reduces the need for extensive due diligence, accelerating the overall process and lowering transaction costs.

An MBO offers a strategically smart solution for seamless and secure business succession. Ideal for sellers who want to entrust their life's work to familiar hands.

A Management-Buy-Out (MBO) is not just a succession solution, but a strategic opportunity for owners to hand over their life's work to trusted hands. We are currently supporting a management team in the acquisition of an owner-managed company and want to highlight the compelling advantages of an MBO from the seller's perspective. Read on to discover why an MBO can be the perfect solution for a smooth and successful business transition!