Management Buy Outs

How are you going to approach your clients?

What happens when business owners retire without a plan?

I recently ran a seminar about Management Buy Outs and how important they will be for your professional future.

The problem: an aging business owner demographic.

I am seeing a growing number of business owners nearing retirement, many without an exit strategy. Trade buyers are not always interested, and as a result, viable businesses are quietly winding up.

Ask yourself:

  • How many of your clients have retired, wound up, or sold. their business in the last five years?
  • How many more will do so in the next five to ten years?

The impact on your income years

Depending on your client base, 10% to 50% of your customers may exit their businesses in the next decade, often without proper planning. That doesn’t just affect them; it impacts your pipeline, income, and continuity too.

The opportunity: introducing Management Buyouts.

Many of these businesses could, and should, be sold to their management teams. They are often profitable, stable businesses. An MBO keeps the business alive, protects jobs, and help preserves the legacy.

The challenges

But there are barriers:

  • The team may not understand what an MBO is.
  • They may not believe it’s possible.
  • They may not know how to fund it.

This is where advisers and finance professionals play a key role, educating and enabling both owners and management teams to see MBOs as a real path forward.

The tax pressure is rising

Recent budget announcements have only increased the urgency:

  • Capital Gains Tax rising to 18% from April 2026.
  • Inheritance Tax changes on business assets and pensions by April 2027.

Waiting could mean owners pay more and walk away with less.

The takeaway

If we do not act, thousands of viable UK businesses may disappear. But with the right support, MBOs offer a path to continuity, succession, and value for all parties involved.

So, What is In It for You?

In the seminar, I explored:

  • How to help management teams overcome fears around initiating MBO conversations.
  • How to address sensitive issues at the start of the process.
  • What alternatives exist to MBOs, aside from winding up or trade sales.
  • How to approach clients considering succession, or management teams looking to make an offer.

If this sounds useful, I am going to be running another seminar, email me at awatkin@assyntcf.co.uk and I will reserve your place.

If you think a colleague would also benefit, feel free to pass this on. I look forward to seeing you at the next session.

What you need to know before a Management Buyout.

I recently heard a short video chaired by Salome Ssempa from Capitalise.com with Head of Funding Nick Richardson answering these questions.

It is specially focused on these challenges.
Here is the video link Funding: Management Buy Out

You can hear more about Nick Richardson by clicking on this link:

https://capitalise.com/gb/authors/nick-richardson

Explore funding options for a Management Buyout with Capitalise

And here is a page from Capitalise’s website being a funding application for a Management Buy Out:

 

https://capitalise.com/gb/businesses/finance-options/management-buyout?utm_source=referral&utm_medium=referral&utm_campaign=assynt-corporate-finance

I trust you will find this information useful and if you believe a chat with me would be useful, please contact me on either 07860 898452 or by email awatkin@assyntcf.co.uk

I look forward to hearing from you.

 

ABW Picture web site

Andrew Watkin

Andrew is the director of Assynt Corporate Finance Limited and an Accredited Member of the Association of Crowdfunding experts.

Previously a partner and head of corporate finance at Baker Watkin LLP, Andrew has more than 40 years of experience in all forms of corporate finance across many business sectors.

Andrew was the Chair of Governors at a local school for six years retiring in December 2020 and continues to be an Assessor of Expeditions for The Duke of Edinburgh's Award.

You can find out more and connect with Andrew over on LinkedIn.

Need Help? Contact Andrew at Assynt:

If you are serious about selling your business, contact Andrew to arrange an informal chat, in person or over the telephone to assess the options open to you.

You can also contact Andrew by email at: awatkin@assyntcf.co.uk or by completing the form on this page.

Call today on 07860 898452

Andrew Watkin Website Enquiry

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