Equity Providers Get Green Light To Back MBO
The integrated finance team of a major bank was looking to invest in a large commercial property firm to facilitate a management buy-out (MBO) from its listed parent company. As the largest financial backers, the stakes were high,particularly given the firm had suffered a failed MBO only a few years before. The priority, therefore, was to achieve a clean, seamless exit from the parent company with minimum disruption to the business and services to clients. This meant a staged exit, with the ownership being shared with a small number of key players in the firm for the first phase, followed by a wider spread in the second.