Management Buy-In Finance

Raise Management Buy-In Finance

Management buy-ins (MBIs) typically require large sums of finance to complete, which can be a hurdle management teams need to overcome. Additionally, there is a need to demonstrate strong management experience in order to secure the most common method of raising capital to fund the buy-in, equity finance.

Equity finance generates capital to fund management buy-ins without overburdening the company with debt, which can occur when bank loans are preferred and represent a large proportion of the funds raised. However, there are other, sometimes more beneficial methods of raising the necessary funding for management buy-ins, for instance through asset based lending facilities.

At Hilton-Baird, we work closely with our clients in the UK in order to deliver the right options for generating MBI funding. Our experienced team will assess your funding requirements, discuss the most suitable solutions and introduce you to the relevant funding partners to facilitate the purchase.

To explore how Hilton-Baird can help you fund your management buy-in, contact us on 0800 9774833 or request a call back.

What is a Management Buy-In?

A management buy-in is the purchase of an existing company by an external manager or team of managers. The new team will not only be investing in the business, but also taking over its management.

An investment of this sort offers a great opportunity to senior executives looking to advance but requires them to find an effective way of funding the purchase.

Funding a management buy-in

When it comes to funding a management buy-in, investors will closely consider the business and the individuals involved in the buy-in. Finding the right funding option or combination of funding options is essential to ensure the success of the buy-in.

Equity Finance

Equity finance can be a great option to raise management buy-in finance as it provides investment without generating lots of debt, while the investors will additionally provide expert input and guidance.

Find out more about Equity Finance

Asset Based Lending

Asset based lending offers a way for a management buy-in to be funded by releasing money against assets on the balance sheet. This can often be used alongside another source of finance to deliver the best deal for the company.

Find out more about Asset Based Lending

Business Loans

If you’re looking for a straightforward funding solution, business loans provide a lump sum of money which is repaid over a set period of time with interest. It can be a good way to obtain MBI finance as it allows you to spread the repayment out over a long term.

Find out more about Business Loans

Why use a finance broker?

With a variety of options available to fund a management buy-in, it can be difficult to be sure you’re choosing the most beneficial method.

An independent and award-winning commercial finance broker, we can use our extensive experience to help you find the right solution based on your specific requirements, saving you time and energy along the way.

Give us a call on 0800 9774833 or request a call back to discuss your needs.

I found that Hilton-Baird not only help people immediately in tough times but they are also a great example of helping foresee longevity and contribute to wider growth and development. I actually surveyed the market recently as is good business practice and my funder remains the best solution for my business a year on.

Neal Warcup, Managing Director, Polar Recruitment

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Finance for a Management Buy-In (MBI)