MBO, LBO, OBO

One of the key challenges faced by family-owned businesses is leadership and ownership succession

In instances where a family-owned firm does not have natural heirs, or wishes to partially or totally exit the business, a Management Buy Out ("MBO"), leveraged or not, can be a good solution to ensure the continued existence of the business.

A MBO consists in having the current (if it differs from the owners) or an external management team - sometimes backed by financial investors - acquiring the business (with leverage or not).

The management team, through its knowledge of running businesses and incentive of holding equity in the business can ensure that the company continues to develop.

One of the critical issues in such instances is to find the right financial partner, properly incentify the management and structure the transaction appropriately.

PwC has significant experience in structuring tailor-made solutions to ensure smooth and efficient transitions between current family management/owners and new managers/shareholders.