MBOs & EOTs
The dynamics of both MBOs (Management Buy Outs) and Employee Ownership Trusts (EOTs) are complex and require careful planning and consideration.
An MBO involves the sale of the business to the current management team, and such a sale would usually involve a combination of company debt, management cash input, deferred consideration and potentially investors.
An EOT involves the sale of a controlling shareholding to a trust (an EOT) for the benefit of eligible employees, with trustees appointed on their behalf. Such a deal would usually involve company debt.
The Snowball Way
We guide you through the whole process, starting from the feasibility of the MBO or EOT and agreeing the strategy, to producing business plans and financial modelling and then to raising the necessary debt and/or equity to enable the deal to complete. We work in the centre of the deal managing all parties and professionals.
We take the business through 3 core stages:
1: Assessing Deal Feasibility and Producing Funding Proposal and Financials
2: Raising the Debt and/or Equity
3: Legals, Due Diligence and Deal Completion
Fee Structure
Our costs for an MBO or EOT are split into two parts:
Part 1: A fixed price fee covering stage 1 as set out above. The fee is split over a 2 to 3 month period.
Part 2: A success fee is charged, which is a percentage of the debt and/or equity raised for the deal and paid only at completion.
Next Steps
For an initial no obligation call or meeting, please contact us to arrange.
Following the call and a review of information, we will provide a free report setting out our early-stage thoughts, what we see as the options and any other matters you should be considering.
If you then wish to take matters further, the report will also include a scope of works and associated costs.
It's never too soon to talk to us - to book a meeting
Get in Touch
Contact
Riverside, Mountbatten Way, Congleton, Cheshire CW12 1DY
info@snowballgroup.co.uk
0161 464 8448
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Snowball Corporate Finance is a trading name of Snowball Advisory Limited which is part of the Snowball Group of Companies.
Snowball Advisory Limited is an Appointed Representative of Snowball Alternative Finance Limited, and is regulated by the Financial Conduct Authority (FCA) under reference 786029 We are a credit broker, not a lender
Registered Address: Riverside, Mountbatten Way, Congleton, Cheshire CW12 1DY
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