At Acthus Capital we have extensive experience in advising management teams looking to undertake buy-outs or buy-ins. A management buy-out (MBO) or management buy-in (MBI) is often a complex and time consuming process.
We have advised teams on a range of topics from putting together the business plan to the positioning, structure and presentation of the team. Our independent advice and support will help avoid the many pitfalls and increase the team's chances of success.
Our role is to advise the appropriate capital structure, identify the most adept investors and lenders and negotiate, on behalf of the management team in co-ordination with the financial partners, the terms of the buyout and the conditions for the management team
Acthus Capital is experienced in handling the delicate situation of the management buyout process:
- Inherent conflict between the shareholders and the management team whose priority is divergent
- Potential conflict with the financial partner during the negotiation of the management package
- Confidentiality and discretion
Acthus Capital supports seasoned management teams on the acquisition of the business entities that they manage, making possible the delicate balance between management interests, the selling shareholders, and the parties funding the transaction.
Can be part of a sale process conducted by the shareholders
- The shareholders decision to sell may result from a refocusing on what is deemed "core activities", disposal due to regulatory constraints, cashing out or their inability to fund and support the development of the business
- The management is often motivated to seize the opportunity to gain control through a management buyout or to conduct a management led buyout as a defensive move as an alternative to another potential buyer
Can be a pro-active initiative conducted by the management team and Acthus Capital
- Desire to create an independent structure which is able to develop beyond the current constraints imposed by its parent company and existing shareholders
- Obtain the necessary funding and commitment from new shareholders and financing providers to support the new business initiatives
- Assume partial/complete ownership providing them with more influence in controlling the company
- Be rewarded financially directly for the success of their business