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Are you looking to finance a Management Buy Out (MBO) or Management Buy In (MBI)?

If so, it is best to involve us at the earliest possible opportunity. We will then be in the best position to negotiate a commercially sound deal and most importantly, one that can be funded.


We can project manage the MBO / MBI from start to finish if needed and are happy to work alongside your existing accountant.


The breakdown of the funding required for your MBO /MBI will be dependent upon your unique circumstances. Funding can be raised across many different platforms but by and large it will comprise of equity, debt and vendor assisted funding in one way or another. 

Debt

Business Loans, Peer to Peer Finance, Invoice Finance, Asset Finance, Commercial Mortgage, Contract Finance.

 

Debt finance is an integral part of any Management Buy Out. The debt is repayable over a fixed term, so it is very important to assess how much debt your business can service before you proceed.

Equity

Management Equity, Business Angels, Venture Capital, Mezzanine Finance.

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This is funding which has the advantage of not having to be repaid in the near future, therefore it is not a debt burden to the future trading performance of the business. 

Vendor Assisted

Deferred Consideration or Earn Out


In most cases, the vendor will usually need to defer a proportion of the consideration in order for an MBO to proceed. In some cases, funding offers can be conditional on a proportion of the consideration being deferred.

 

An earn-out structure may lead to additional consideration being payable to the vendor if the business achieves or surpasses specific financial targets following completion of the buyout.

 Contact our experienced Brokers to see how we can help your business grow 

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SPECIALIST SERVICES

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The King Centre

Main Road

Barleythorpe

Oakham 

Rutland 

LE15 7WD

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T. 01572729729

info@reservoirfinance.co.uk

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Belinda Milton t/a Reservoir Finance is authorised and regulated by the Financial Conduct Authority. Our Reference number is 742264. Reservoir Finance is an authorised credit broker and not a lender. We work with an unrestricted number of Lenders to find a potentially suitable arrangement for your consideration.​

Our ICO registration number is Z7551839 and you can check this at www.ico.org.uk.​

We will receive commission from lenders. Different lenders pay different amounts depending on different commission models. For transparency, we work with the following commission models: fixed fee, fixed rate of commission, percentage of the amount you borrow and rate for risk (this is based on the risk profile of the business). For certain lenders, we have influence over the interest rate, which can impact the amount you pay under the agreement. Further details of the commission model, calculation and amount will be disclosed to you throughout your customer journey.

Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

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