Management buyout services by PEM Corporate Finance

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Management Buyouts An alternative to trade sale

Turning managers into owners There are two popular routes to achieving a buyout: A management buyout (MBO) lets the management team of a business acquire it from its owners, possibly with the help of financial backers.

It provides managers with a once in a lifetime opportunity to own their own business and enjoy financial rewards that exceed those of a salaried individual.

A succession buyout helps business owners to preserve their legacy by selling to their management team. This type of transaction is sometimes called a VIMBO (vendor initiated management buyout) or FAMBO (family buyout).

The key factors to making any management or succession buyout work are: ▪▪ A well rounded and ambitious management team ▪▪ A cash generative business ▪▪ A willing vendor with realistic price expectations

The MBO process A buyout can be a time consuming and stressful process. As advisers, we guide and help you through each stage in the process. These include: ▪▪ ▪▪ ▪▪ ▪▪ ▪▪ ▪▪

Feasibility assessment Writing a business plan Presentations to potential financiers and selecting the best offer Negotiations Legal documentation Project management to completion

We help you create a business plan that is attractive to the banking and equity finance market, and we introduce you to our key financier contacts. We often work with management teams to: ▪▪ ▪▪ ▪▪ ▪▪

Build bespoke financial models Provide an indicative valuation on the business Advise on structuring Represent them in negotiations with the vendor and financiers

We believe an MBO or succession buyout revolves around the people involved. It is about making the deal work for all parties and managing the communication between the current owner and the new team.

PEM Corporate Finance has considerable experience in buyouts and company restructuring, and we enjoy immediate access to the business tax and share scheme experts at PEM. This enables us to find the best options for vendors and management teams alike.

Our team

Lake Falconer BAcc CA CF

Tony Stairs BA MBChB ACA

Lake leads the PEM Corporate Finance team on all manner of M&A transactions.

He has 25 years of senior level experience in corporate finance, venture capital and industry. He is a member of the ICAEW corporate finance faculty and Valuations Special Interest Group.

Tony qualified as a Chartered Accountant at PwC and spent time at EY. He joined PEMCF in 2004, having already led PEM’s business advisory services for several years. He has successfully led several sale and buyout transactions, and has a particular focus on succession issues. He holds the ICAEW corporate finance qualification.

Partner

Email: lake@pemcf.com Email: tony@pemcf.com

Who we are PEM is the largest independent firm of Chartered Accountants, Tax and Business Advisers based in Cambridge.

PEM Corporate Finance (PEMCF) is the corporate finance division of PEM and is a leading provider of M&A and buyout advice to owner managed businesses throughout East Anglia. PEM Corporate Finance is authorised and regulated by the FCA. To find out how PEMCF can help you and your business, contact us on the details below.

pemcf.com PEM Corporate Finance LLP Salisbury House Station Road Cambridge CB1 2LA

t. +44 (0)1223 728 222 f. +44 (0)1223 461 424 e. info@pemcf.com