A Management Buy Out (MBO) will often provide the simplest way for a company's owners to achieve an appropriate way of securing an effective succession in ownership together with achieving an appropriate financial reward. The management team will have the most intimate knowledge of the company and have a vested interest in maintaining continuity and security in staff, customer and supplier relationships that have evolved over many years.
The dynamics of an MBO are complex, not least because of the pressure to maintain the relationship between two parties, the exiting vendor and the existing management team, who have most likely been close working colleagues over many years. The role of an independent advisor like Lexington is critical in these circumstances. Our team has a long record of working with vendors or management teams to conclude a smooth transaction identifying issues and navigating roadblocks that may derail the progress of the deal. We work in a constructive manner to make the transaction happen not losing sight of the longevity of the vendor and management team relationship which often continues post transaction.