MANAGEMENT BUY IN: HOT OR NOT?
MANAGEMENT BUY IN: HOT OR NOT?
The market for Management Buy Ins (MBI)
Recently someone asked me how the market for Management Buy Ins (MBI) is now. Good question, I really had to think about that.
Ten years ago, there were many people who were out of the organization and therefore sought their luck in a business takeover. You had to separate the good from the bad by asking the question whether the potential MBI wanted to buy a company or a job. In 2018 you do not have to ask that question anymore. Motivated and committed MBIers see opportunities and want to take action on the waves of a strongly attracted economy. This implies a much better market than ten years ago. Some nuance is in place.
Now it is the other way round
Ten years ago we were dealing with a buyer’s market. SMEs had little reserves and could not (yet) present nice figures that justified a substantial takeover sum. Now it is the other way round: the salesperson sits in a chair with appealing results and even better prospects. In addition, there is a lot of money in the market to take over companies. Investors, private equity and strategic buyers all run around each other with well-filled bags filled with money, looking for beautiful opportunities.
What has remained the same, however, is that qualified management must run these companies. That may be the current management, but if this layer wants to exit, it means opportunities for MBI people. So if you have a clear plan as an MBI and you have the right competences and personal characteristics, then there are plenty of opportunities in this market. With some smaller companies, a full acquisition is possible, but the company is already more solid, I would bet on a purchase with a financial partner at your side. And there is nothing wrong with that: whoever can share, can for the time being multiply with confidence.
