Management Buy-Outs (MBO).

Renatus case study

  • A management buyout (MBO) can be a great opportunity for you to invest in a company you have worked with for a long time. It may also be a new opportunity for you to work in a sector you are keen on.
  • In December 2017, Renatus partnered with the existing management team to complete a Management Buy-Out of Rennicks from its parent company, Fitzwilton Group.
  • Renatus supported the Managing Director, Michael Flanagan, and Finance Director, Dolores Nevin in their acquisition of the business.

What Is a Management Buy-Out (MBO)

  • A management buyout (MBO) is a transaction where a company’s management team purchases the assets and operations of the business they manage.
  • MBOs offer current management the opportunity to take the reins of their enterprise, fueling motivation and dedication to drive growth.

Why an MBO?

  • A management buyout (MBO) is appealing to professional managers because of the greater potential rewards and control from being owners of the business rather than employees.

Key components:

  • Management Team Involvement: The existing management team plays a central role in MBOs, as they assume ownership or significant control of the company.

  • External Financing: External investors, often including private equity firms such as Renatus, may provide the financing needed for the management team to buy the business.

  • Alignment of Interests: MBOs align the interests of management with ownership, fostering a sense of responsibility and shared goals.

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