Selling a business to internal or external management or to one of the owners is an interesting option when it comes to company succession planning. MAYLAND AG provides advice on a company takeover (or parts thereof) by

  • Management Buy-Out (MBO)
  • Management Buy-In (MBI)
  • Owner Buy-Out (OBO)
MAYLAND AG has excellent contacts to top executives with entrepreneurial ambitions as well as financial investors. As an investment bank for medium-sized businesses, MAYLAND AG has long-standing expertise in the monitoring of the aforementioned procedures.

We oversee the successful management of MBO/MBI/OBO procedures and assist you with the following services:

  • Validating the viability of an MBO / MBI / OBO
  • Choice of co-investors
  • Strategic planning
  • Financing structure
  • Negotiation process until closing of the transaction
Management Buy-Out (MBO)

A transaction where a company’s management team purchases the assets or shares and operations of the business they manage. A management buyout is appealing to professional managers because of the greater potential rewards from being owners of the business rather than employees. MBOs are favored exit strategies for private businesses where the owners wish to retire. 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.

Management Buy-In (MBI)

A MBI is a corporate action in which an outside manager or management team purchases an ownership stake in the first company and replaces the existing management team. This type of action can occur due to a company appearing undervalued or having a poor management team. It can also be part of a succession strategy.

Owner buyout (OBO)

An OBO is a special form of a buyout transaction, in which the vendor keeps control of a certain stake in the company after the transaction. This is achieved in a two-step transaction: First, the private equity company performs a regular leveraged buyout and thus acquires the target company by a special buyout vehicle (NewCo). Second, the vendor reinvests a part of the purchase price in the new vehicle and is in turn granted a stake in this vehicle.