MANAGEMENT BUYOUTS (MBO) & MANAGEMENT BUY-INS (MBI)
Management Buyout (MBO)
What Is a Management Buyout (MBO)
A management buyout (MBO) is a transaction where a company’s management team purchases the assets and operations of the business they manage.
Why an MBO?
A management buyout is appealing to professional managers because of the greater potential rewards and control from being owners of the business rather than employees.
How it works
The financing required for an MBO is often quite substantial and is usually a combination of debt and equity that is derived from the buyers, financiers, and sometimes the seller.
MBO Case Study: Rennicks Group
In November of 2017, Renatus partnered with the management team of the Rennicks Group, a leader to complete a Management Buyout of the business.
“Renatus were clear and detailed from the outset about what our agreement would be. Renatus never moved the goal posts once, great partners in negotiations with both banks and vendors. This was of huge comfort as I had only one shot at an MBO and the guys supported this and helped me realise my dream of owning the company I’ve run for 35 years. They have been supportive in many ways since we acquired the business and we are enjoying the journey with them.”
Michael Flanagan, Rennicks MD / MBO Partner
Listen to Mike’s Story
Management Buy-In (MBI)
What Is a Management Buy-In (MBI)
A management buy-in (MBI) is a corporate action in which an outside manager or management team purchases a controlling ownership stake in an outside company and replaces its existing management team.
Why an MBI?
The target company is acquired by outside investors when the company’s decision-makers consider it to be underperforming, and the company’s products could generate greater than current yields with the proposed change in current business strategy and/or management.
How it works
Once the transaction is complete, the buyer officially becomes the owner of the company’s management and can nominate their representatives as the board of directors.
MBI Case Study: Boojum
Renatus partnered with the David and Andrew Maxwell in 2015 to complete a Management Buy-In of Boojum, a Belfast-headquartered burrito restaurant group. Boojum is now the fastest growing growing and largest burrito restaurant group on the island of Ireland
“We were wary talking to private equity partners but the Renatus guys felt like peers and we were comfortable with them from day one. From the outset Renatus have been very supportive through the senior partners input, their help in supporting the team and through the doors their investors have opened.”
David Maxwell, Boojum MD / MBI Partner
Listen to David’s Story
THE VALUE WE BRING
We make quick and timely investment decisions and have the capability to quickly move through the deal execution process.
We facilitate growth and create value by focusing on the areas where we can make the greatest contribution, these are set out below.
Renatus is backed by a collective of self-made entrepreneurs who are
experts in their respective industries, passionate about business and
love to work with and share their experience with our partners.
We have access to a pool of co-investing experts across a diverse
range of industries. This pool can be tapped to strengthen the board
with individuals that have extensive industry experience and are
deeply passionate about the industry.
We have a network of top-class talent across the various
functional areas of a business. If a gap exists, this talent can be
“plugged in” as a part-time/full-time executive or as a non-executive
to boost business performance
Having spent many years in advisory & operational roles, each of
Renatus’ Directors brings with them a unique blend of strategic,
commercial and operational expertise to our partner companies that
significantly enhance strategy formulation and decision-making
We act as an In-house corporate finance & consulting team for our
partners, providing thorough market research, strategy review &
assisting in its formulation as well as evaluating and executing
potential bolt-on acquisitions and negotiating with banks.
- Entrepreneurs Club of Investors
- Pool of Co-Investing Experts
- Network of top-class Talent
- Operational and Strategic Expertise
- In-House Corporate Finance & Consulting Team
GET IN TOUCH
If you’re interested in exploring your options and having a confidential discussion, please fill in the form adjacent, call into us here in Renatus or email us at mark@renatus.ie
