Sterling Capital Reserve have vast experience in advising management teams on debt funded management buy-in (MBI) procedures where a new merger team take ownership of the business.
Obtaining finance for a management buy in is traditionally a difficult process, particularly when compared to a management buyout. From a lender’s perspective, a key consideration for MBIs will be the high inherent risk attached to an incoming management that will not be as familiar with the business as the incumbent management team. It is because of this risk that funding can prove trickier to secure. Banks can often be hesitant to lend for this reason but thankfully, through our key relationships with a variety of niche lenders and private lending consortiums, we have access to a wide range of funding options that can make the difference.
We are recognised as a leading adviser on MBIs with the experience, commitment and relationships to manage the often complex and time consuming process on behalf of management Buy-in teams.
We are regularly called in to assist Accountants and Corporate advisers source funding for MBI’s for their clients. We are also referred to many proposed transactions by banks who can’t provide MBI finance. We help fund the deal, then the bank takes the client back (at a cheaper rate) in 12 months time as a refinance.