Management Buy-In’s

Had an interesting meeting recently with a guy who helps people with succession strategies and business exits. He has an interesting approach – one of their strategies involves looking for potential buyers with strong business skills to take an initial interest in the business (potentially partially funded by the vendor) with an agreement in place for the remainder of the business to be sold to the buyer over a period of time, say 1-3 years. By reducing the emphasis on upfront investment the vendor is exposed to a greater pool of candidates who may bring more to the party than just cash. This approach recognises that it is in the interests of customers, suppliers, staff and the vendor that any business sale is handled professionally and that ultimately the business continues to prosper.

Tagged as: exits, mbi