Management Buy-Outs

MBO courses at Redcliffe Training are delivered by an expert who has worked on corporate finance and capital markets transactions for over thirty years, holding client-side positions and leading advisory teams.

At the Department of Energy, he was a civil servant involved in the privatisation of British Gas, a global IPO involving a large advisory team. He also spent two years (1990-92) in the Hungarian Government privatisation agency, working with many advisory firms, as the changing political environment triggered massive ownership change. He has worked in major investment banks (Swiss Bank Corporation International – now UBS - and Lazard) and also co-founded a successful M&A advisory boutique firm. In 2021, our MBO training specialist retired from KPMG, having spent 13 years in the firm’s global M&A business, based in Scotland.

His experience combines a broad range of M&A and equity transactions in North and Central America, Asia Pacific, major European countries, and, most recently, Africa. His MBO courses draw deeply on case studies from transactions he has run, bringing practical examples to set alongside the theory.

• MBO training gives an introduction to the concept of buyout transactions.
• What drives buyout economics – understand the sources of funds (debt & private equity) and the key value drivers.
• Explore the motives and objectives of private equity investors and their typical target returns.
• Debt matters: demonstrate how debt enhances returns - appreciate the fundamental role of bank debt and the potential of other forms of buyout debt.
• Why management buyouts are more complicated: Overview of the extra layers involved (relative to a trade sale) in putting buyouts together.
• A crowded house: understand the roles of the various parties, and how to deal with each – focus on potential conflicts of interest.
• Management’s role: understand the specific issues relating to the management team and what advice the managers will need.
• Partnering: choosing the right equity house(s) to approach.
• This MBO course covers the worst-case scenario: how MBOs may go wrong and what may ensue.

• At Redcliffe Training, our MBO course is delivered by a trainer who has been involved in negotiating and closing M&A transactions for over 25 years.
• He has worked on a wide range of M&A deals, including trade sales as well as management buyouts; this course conveys the key differences between the two.
• Sessions explain what makes an MBO a business suitable for a buyout – and the key negotiating points in bringing the multiple parties together.
• Training is illustrated throughout with practical examples and real-world case studies.
• A complete, one-stop introduction to all aspects of MBOs and Private Equity is included.

 This course is aimed at anyone who may wish to have a better understanding of what an MBO involves.

 It is a ‘must know’ for anyone involved in, or expecting to be involved in, the buyout of a business, including:

• Business owners considering a sale, especially where a transaction involving the management team is under consideration;
• to managers, who may wish to have a better understanding of what a sale involves – and the specific complexities of an MBO;
• Business managers considering an MBO of the business in which they work;
• Family business advisers;
• M&A professionals in investment banks, boutique advisory businesses, and the corporate finance arms of accountancy firms;
• Corporate business development teams, for example in large, diverse PLCs where disposals of parts of the business may be on the agenda and an MBO may be an option; and
• Private equity professionals, particularly those new to the industry, having trained as accountants, consultants or lawyers.

 And a ‘nice to know’ for:

• Legal and other advisers involved in the M&A process, seeking a better understanding of the specific intricacies of a buy/ sell by way of an MBO.

The course is particularly helpful to those with some basic exposure to the concepts of management buyouts and private equity, and wishing to accelerate their understanding of what underpins successful deals.

Buyouts are such an important part of the M&A landscape. So important that in recent years they have made up to 50% of all transactions.

MBO training begins by helping you understand why buyouts have become popular, with a focus on the main industry participants driving activity – the private equity houses. Whilst these may appear to have much in common with each other, we take time to understand how to differentiate between houses and choose the ‘right’ buyout partner.

We then walk through what makes a buyout successful in economic terms, taking time to understand the importance of growth, debt and timing. Going beyond economics, the course explores the relationship between management teams and equity houses, the key to success, but also a relationship which can become tough when deals falter.

MBO courses include clear case studies and financial explanations, plus a look at the type of financial modelling on which buyout participants base their investment decisions. Participants receive a full and valuable overview of how to start on the journey to a management buy-out and plan a successful transaction.