Succession planning and exit strategies

Family businesses

Family businesses make up around two-thirds of the UK’s small and medium-sized enterprises.

We have particular experience in working with the owners of family firms to put in place succession plans, for a smooth transition to a new generation, either to the next generation or the wider business family, for example through a management buyout – an option that offers the flexibility of allowing a phased exit/equity release while incentivising key management.

From experience, we know that keeping the succession planning process fair and objective can sometimes be challenging, which is where our expertise and sympathetic approach in sensitive situations can add real value.

Succession planning is surrounded with jargon but we can help to demystify and clarify the options involved and support you throughout the process.

Management buyout

A management buyout, or MBO, is the acquisition of a business by its existing management team.

It is not always planned with the knowledge or blessing of the owner and fiduciary duty must be considered.

We can assist both business owners and management teams to preserve confidentiality, discourage hostility and maximise the effectiveness of this process. Please contact our corporate finance team for more information or to arrange a free, initial meeting.

Management Buy-In

Serial entrepreneurs are always on the look out for the next opportunity, and can offer a wealth of experience to benefit the businesses through a management buy-in, or MBI. Please contact our corporate finance team for more information or to arrange a free, initial meeting.

Buy-In Management Buyout (BIMBO)

A BIMBO is a combination of an MBO and MBI acquisition by both new and existing management. We can also assist with sourcing buy-in candidates for this process. Please contact our corporate finance team for more information or to arrange a free, initial meeting.

Vendor-Initiated Management Buyout (VIMBO)

A VIMBO is a “friendly” MBO, which has the encouragement, and often financial support, from the sellers. Please contact our corporate finance team for more information or to arrange a free, initial meeting.

Preparing to take a back seat

There are many ways to attract and retain the best staff, with options that can add value to the employer and employee and provide excellent tax breaks. They include:

  • share option schemes, which are a tax-efficient way to transfer shares to members of staff
  • Enterprise Management Incentive (EMI) schemes, which are designed to help small, higher risk companies recruit and retain employees while rewarding employees.

To arrange a meeting to discuss the best option for you and your business, please contact our contact a member of our corporate finance team.