MBOs & MBIs
An MBI differs from an MBO in the initial stages because a suitable target company has to be identified.
Ideally the targeting should be focussed on companies that fit with the profile and experience of the MBI candidate/team as this gives the best chance of success and should provide confidence to financial backers.
MBIs are typically more time consuming than MBOs because of the targeting stage and also because the due diligence requirements will be greater to take account of the lack of insider knowledge on the target.
In both MBOs and MBIs the quality and experience of management is key. It is imperative that an early appraisal is undertaken on the target company to ensure the deal being proposed is feasible and deliverable.
Ideally the targeting should be focussed on companies that fit with the profile and experience of the MBI candidate/team as this gives the best chance of success and should provide confidence to financial backers.
MBIs are typically more time consuming than MBOs because of the targeting stage and also because the due diligence requirements will be greater to take account of the lack of insider knowledge on the target.
In both MBOs and MBIs the quality and experience of management is key. It is imperative that an early appraisal is undertaken on the target company to ensure the deal being proposed is feasible and deliverable.
- For MBIs we perform pro-active searches using desktop research and through our network of intermediary contacts and other PKF offices
- We perform an early feasibility review thus reducing costs and preventing time wasting
- We provide a buffer between the vendor and management team so relations are maintained – this is particularly important for MBOs
- We have extensive knowledge of funding markets and therefore are able to minimise the number of meetings with funders
- Your lead contact will always be an experienced corporate finance partner or director. PKF provides the added comfort of being a large organisation capable of offering expertise in a number of specialist areas.