Management Buy Out


- Risk that good management members are not necessarily good entrepreneurs and thus success fails to materialise.

- Management overstretches itself with the financing and is thereby also overly burdened privately.

- If several management members take over, there is a risk of conflicts over ideas of leadership, strategy and competencies.


- There is no realistic family internal succession in sight

- There is confidence in the existing management that they   are able to transition from the role of employees to the role of responsible entrepreneurs.

- Clarification of the role of the seller after the handover

- Healthy financial basis of the company in terms of earnings and cash flow, so that the financing of the purchase price can be guaranteed.

- Possible willingness of the owner family to help with financing through loans.

- Sufficient equity of the buying management.

- Possible hedging modes of loans of the seller.

- Confidence of the banks that the buyers will successfully continue the business. This is a prerequisite for securing financing for the purchase and securing the necessary liquidity from the banks.


- The management's resistance to an external successor, which often occurs, is eliminated.

- This also creates a certain continuity for the employees and many uncertainties that arise with an external solution do not arise.

- The disclosure of information that is necessary in the case of a sale to an external successor is eliminated, and with it the danger that this information will reach places that are not desired.