{"id":42718,"date":"2021-10-23T00:00:00","date_gmt":"2021-10-22T22:00:00","guid":{"rendered":"https:\/\/techma.bakertilly.es\/que-es-mbo\/"},"modified":"2024-06-21T10:52:08","modified_gmt":"2024-06-21T08:52:08","slug":"que-es-mbo-ss-a2","status":"publish","type":"diccionario","link":"https:\/\/techma.bakertilly.es\/en\/como-hacer\/que-es-mbo-ss-a2\/","title":{"rendered":"What is an MBO?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Contents\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/techma.bakertilly.es\/en\/como-hacer\/que-es-mbo-ss-a2\/#%C2%BFQue_es_un_Management_Buy_Out\" >What is a Management Buy Out?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/techma.bakertilly.es\/en\/como-hacer\/que-es-mbo-ss-a2\/#%C2%BFEn_que_consiste_un_MBO\" >What is an MBO?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/techma.bakertilly.es\/en\/como-hacer\/que-es-mbo-ss-a2\/#%C2%BFCuando_se_lleva_a_cabo_un_MBO\" >When is an MBO carried out?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/techma.bakertilly.es\/en\/como-hacer\/que-es-mbo-ss-a2\/#Ventajas_del_MBO\" >Advantages of MBO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/techma.bakertilly.es\/en\/como-hacer\/que-es-mbo-ss-a2\/#Etapas_del_proceso\" >Stages of the process<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/techma.bakertilly.es\/en\/como-hacer\/que-es-mbo-ss-a2\/#Factores_importantes_a_tener_en_cuenta_en_la_operacion\" >Important factors to take into account in the operation<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%C2%BFQue_es_un_Management_Buy_Out\"><\/span>What is a Management Buy Out?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In the process of <a href=\"https:\/\/techma.bakertilly.es\/en\/sale-of-companies\/\" data-type=\"URL\" data-id=\"https:\/\/techma.bakertilly.es\/venta-de-empresas\/\">selling a company<\/a> there is an option to consider the exit of the owner or the entrance of the one who  <a href=\"https:\/\/techma.bakertilly.es\/en\/acquiere-a-company-2\/\" data-type=\"URL\" data-id=\"https:\/\/techma.bakertilly.es\/compra-de-empresas\/\">buy the company<\/a> call <strong>Management Buy Out (MBO)<\/strong>.  Below we explain what a Management Buy Out is, its main advantages, stages and operations. We also talk about a basic term in the investment ecosystem that you need to know.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%C2%BFEn_que_consiste_un_MBO\"><\/span>What is an MBO?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A management buy-out is a management buy-out of a business by its own management team, which usually requires external financial backing by, for example, private equity funds. <\/p>\n\n\n\n<p>MBO operations are usually carried out on <strong>companies that are in good financial health, in mature sectors and that are cash generative<\/strong>These are usually buy-out operations that private equity can leverage with bank debt.<\/p>\n\n\n\n<p>This type of operation usually takes place in family businesses, where the owners do not have a clear succession within the family and whose managers are a good option to take over ownership together with a private equity fund. They are also common in spin-offs or business units that are no longer strategic for a multinational. In this case, the management team of the unit put up for sale can seek the support of a private equity fund to launch a Management Buy Out and buy the business unit or company.<\/p>\n\n\n\n<p>One of the fundamental aspects in this type of transaction is that there are three parties that play a relevant role in the negotiation: the management team, the divesting shareholder and the financial partner. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignright size-full\"><img decoding=\"async\" width=\"1024\" height=\"732\" src=\"https:\/\/techma.bakertilly.es\/wp-content\/uploads\/2021\/10\/mbo-1024x732-1.jpeg\" alt=\"mbo\" class=\"wp-image-53291\" title=\"\" srcset=\"https:\/\/techma.bakertilly.es\/wp-content\/uploads\/2021\/10\/mbo-1024x732-1.jpeg 1024w, https:\/\/techma.bakertilly.es\/wp-content\/uploads\/2021\/10\/mbo-1024x732-1-300x214.jpeg 300w, https:\/\/techma.bakertilly.es\/wp-content\/uploads\/2021\/10\/mbo-1024x732-1-768x549.jpeg 768w, https:\/\/techma.bakertilly.es\/wp-content\/uploads\/2021\/10\/mbo-1024x732-1-18x12.jpeg 18w, https:\/\/techma.bakertilly.es\/wp-content\/uploads\/2021\/10\/mbo-1024x732-1-600x429.jpeg 600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption><a href=\"https:\/\/linktr.ee\/bakertillygda\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/linktr.ee\/bakertillygda\" rel=\"noreferrer noopener\">Management Buy Out (MBO)<\/a><\/figcaption><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%C2%BFCuando_se_lleva_a_cabo_un_MBO\"><\/span> When is an MBO carried out? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The main situations in which such an operation is carried out are as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Privatisation of public companies: this is an interesting alternative to share issues (usually the case in the UK).<\/li><li>Defence against a possible acquisition of the company by a third party<\/li><li>When the majority shareholder wishes to sell its shareholding<\/li><li>Family businesses whose owners do not have a clear succession within the own family<\/li><li>Sales of multinational business units<\/li><li>As a last resort for companies facing closure (this is very rare).<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ventajas_del_MBO\"><\/span>Advantages of MBO<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Compared to other types of operations in the sale or purchase of a company, those of Management Buy Out are:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Involvement of the management team not only as professionals but also as owners.<\/li><li>Maintaining the independence of the business project.<\/li><li>It includes a fully committed team, with their savings invested in the company and a clear understanding of the requirements of the sector. <\/li><li>With regard to customers or suppliers, there are no changes in the company. <\/li><\/ul>\n\n\n\n<p><span style=\"font-size: revert; color: initial;\">This makes the MBO one of the most desirable transactions for private equity. In fact, many buy-out transactions include contracts or clauses that commit the management team to stay in the business.   <\/span> <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Etapas_del_proceso\"><\/span>Stages of the process<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The process for carrying out a <a href=\"https:\/\/es.wikipedia.org\/wiki\/Adquisici%C3%B3n_por_la_direcci%C3%B3n\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/es.wikipedia.org\/wiki\/Adquisici%C3%B3n_por_la_direcci%C3%B3n\" rel=\"noreferrer noopener\">MBO<\/a> is made up, broadly speaking, of the following stages:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li style=\"text-align: justify;\">Feasibility analysis: development of the business plan, determination of the financial structure and search for capital.<\/li><li style=\"text-align: justify;\">Negociaci\u00f3n con el vendedor: determinaci\u00f3n del acuerdo (precio, condiciones de pago,&#8230;) y preparaci\u00f3n de los documentos legales necesarios.<\/li><li style=\"text-align: justify;\">Final phase: regulation and articulation of the agreements reached. The new managers implement the ideas integrated in the business plan.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Factores_importantes_a_tener_en_cuenta_en_la_operacion\"><\/span>Important factors to take into account in the operation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>For a Management Buy Out to be successful, a number of factors must come together. <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>That the company's shareholder decides to sell its shareholding<\/li><li>Existence of a professional management team<\/li><li>Solid business with tangible growth potential<\/li><li>Attractive exit opportunity for the external investor <\/li><\/ul>\n\n\n\n<p>The existence of a highly professional and competent management team is a determining factor. It is important to assess whether the managers are capable of operating as owners of the business and can lead the company towards new growth. <\/p>\n\n\n\n<p>Desde el punto de vista de la rentabilidad y los aspectos financieros, no cualquier empresa vale para este tipo de procesos. Es necesario que haya una capacidad \u00abpredecible\u00bb de generar recursos, es decir un \u00abCash flow\u00bb positivo para poder atender las distintas formas de financiaci\u00f3n. <\/p>\n\n\n\n<p>It is important for the external investor to have the opportunity for an attractive exit at a certain point in time, which must be agreed before the transaction is closed. The investor then generates the main return on his investment by acquiring all or part of his stake from another investor, the stock market or the management team. <\/p>\n\n\n\n<p>Another very similar operation is Management Buy In (MBI). <\/p>\n\n\n\n<p><\/p>","protected":false},"author":4,"featured_media":0,"template":"","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":""},"tags":[155,153,334,335,336],"paso-howto":[2228],"sectores":[],"class_list":["post-42718","diccionario","type-diccionario","status-publish","hentry","tag-corporate-finance-spain","tag-global-corporate-finance","tag-ma-espana","tag-management-buy-out","tag-mbo","paso-howto-venta-potenciales-inversores"],"acf":[],"_links":{"self":[{"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/diccionario\/42718","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/diccionario"}],"about":[{"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/types\/diccionario"}],"author":[{"embeddable":true,"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/users\/4"}],"wp:attachment":[{"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/media?parent=42718"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/tags?post=42718"},{"taxonomy":"paso-howto","embeddable":true,"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/paso-howto?post=42718"},{"taxonomy":"sectores","embeddable":true,"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/sectores?post=42718"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}