Management buy-in (MBI)

management buy-in (MBI) is when a high-level manager or management team from outside the company raises the necessary funding to buy the shares from the company’s existing shareholders and then becomes the company’s new management. Acquiring an existing company gives managers the opportunity to hit the ground running and a solid base from which to grow. But how do you determine the value of the company when you only have limited information? The first thing we do in the MBI process is to give a value indication so that you can determine whether a company is a potential buy-in candidate.

Valuation for management buy-ins

When valuing a company for a management buy-in, we give the potential buyer a general indication of the value. In this initial phase, most potential buyers want:

  • Insight into relevant value drivers for the company.

  • An indication of the company’s current value and its value potential with you at the helm.

  • Insight into the transaction structure and the possibilities for funding the take-over price.

What we do for you

We provide potential MBI candidates with a clear profile of the company they want to take over by calculating the value and identifying the key value drivers. Analysing the historical data to predict future values is a relatively important part of this. If the company has already issued a forecast or projection, for example in an information memorandum, we can convert it into a valuation. We can also support you in making your future scenarios more transparent and evaluating the sensitivity of the key value drivers such as growth, margin and investments. In addition to a valuation based on forecasts (using the DCF method), we also look at recent transactions in the same sector as well as the prices that have been paid.