A carefully structured management buyout (“MBO”) can be risk-managed and can be tailored to reflect the current level of readiness within the management team. As well as taking cash now and over time, the exiting owners will usually retain an additional economic interest in the future growth of the business. There are a number of pros and cons versus a traditional ‘trade sale’, making this a great option for some business owners, depending on their situation.

There are many moving parts including funding sources, tax clearances, the formal balance of control post-MBO and of course the structure and make-up of the new ownership regime. An early conversation about this option and its nuances can give a good idea about whether it could meet your goals.