Management Buyout (MBO)

A management buyout (MBO) is a unique opportunity – for both sides of the table. For owners, it provides a trusted exit route – passing the business on to people who know it inside out. For management teams, it’s a chance to step into ownership of the business they’ve helped build.

At Dexterity Partners, we specialise in helping both owners and management teams navigate the complexities of the MBO journey. From feasibility, planning and structuring to funding and completion, we provide a joined-up, end-to-end service that can work for all parties and increases your chances of success.

For a more detailed look and insight into management buyouts you can read one of our articles that go into depth – What is a management buyout (MBO) and how does it work?

Request a Free Confidential Consultation

MBO’s that work for both sides

We understand that selling a business is one of the biggest financial decisions you’ll make. That’s what we offer:

  • Tailored to the SME Space – We understand the unique dynamics of smaller businesses, from valuation gaps to funding constraints.
  • Funding & Structure Specialists – We help you structure the deal, secure funding, and negotiate terms that work.
  • Integrated Legal & Financial Support – No need for multiple advisors; with legal and accountancy under one roof, we reduce costs and friction.
  • Confidential & Discreet Process – Ensuring smooth transactions with minimal disruption.
  • We act for either side – or both – depending on what’s needed to get the deal done.
Speak to an MBO Advisor Today
MBO’s that work for both sides

Why Choose Dexterity Partners?

We specialise in advising Owner Managers on how to sell their business to maximise the value to shareholders. We are different from all other advisors, accountants and sales brokers because  we provide a start to finish service. It is personally managed and not handed over to a junior colleague once signed up.

  • A unique End-to-End service – From valuation to completion, we manage the entire process.
  • A joined up legal approach – Every sale needs a legal team we have our own, and they’re involved from the start. 
  • A track record of success – We don’t sign clients up and hope, we deliver every time. Our process ensures success.
  • Personalised Service – Every client receives a tailored strategy.
  • Extensive Funder Network – We bring a strong network of lenders and investors to help get deals done
Why Choose Dexterity Partners?

MOB Process Step-By-Step

Initial Proposal

The process usually begins when the management team expresses interest in acquiring a part of or the entire company. As the seller, you will receive a proposal outlining their intentions. It's important to evaluate this initial proposal critically, considering the management team's ability to successfully lead and finance the buyout. However it could also be a proposal from yourself to the management team or part of more informal discussions about the business succession in which the possibility arises and gets discussed.

Valuation and Due Diligence

The next step involves determining the fair market value of the business. This is crucial for both parties to ensure a fair transaction. You, as the seller, should engage financial advisors or valuation experts for an accurate assessment. Concurrently, the buying team will conduct due diligence to thoroughly understand the company's financials, legal standings, and operational metrics.

Negotiating the Deal

Once the valuation is clear, negotiations begin. This stage involves discussing the price, terms of the sale, and any other conditions. It's important to negotiate terms that are favourable and protective of your interests while also being fair to the buying team. Legal and financial advisors play a critical role in these negotiations, which Dexterity Partners can provide both of these services together in one joined up service.

Financing Confirmation

The management team will need to secure financing for the buyout. As a seller, you should seek confirmation of their financing arrangements. This often involves a combination of equity, debt, and sometimes seller financing. Ensuring the buyers have solid financial backing is crucial to the success of the deal and it is important that you as the seller are happy with the financing arrangement.

Structuring the Deal

The deal can be structured in various ways, depending on tax considerations, financing arrangements, and other factors. Common structures include leveraged buyouts, earn-outs, or straight cash deals. Your advisors will help you understand the implications of each structure and choose the one that best fits your objectives.

Legal Documentation and Closing

Once the deal structure is agreed upon, legal documents are drafted. These include the purchase agreement, shareholder agreements (if applicable), and any other relevant contracts. It's essential to review these documents thoroughly with your legal advisors. After all parties agree on the terms and the paperwork is in order, the deal can close.

Post-Closing Transition

After the deal closes, a transition period often follows where you, as the seller, might assist in transferring control of the company to the management team. This phase is critical to ensure a smooth handover and continued business operations.

Final Settlement and Post-Deal Formalities

Finally, ensure all financial transactions are completed as per the agreement, and attend to any post-deal formalities, such as notifying stakeholders, transferring shares, and updating company records.

Why Consider a Management Buyout?

MBOs can be the ideal succession route. 

For owners, an MBO is often the most discreet and dependable succession plan. Allowing business continuity, preserving culture, and enabling existing managers to step up into ownership. 

For management teams, it’s an opportunity to take control and shape the future of the business they know best.

But MBOs are not simple. They need careful structuring, robust funding, and a clear understanding of what each party wants to achieve to ensure it works for both the buyers and the outgoing owners.

MBOs suit management teams with the capability and appetite to own the business they help run. You’ll need a solid commercial case, good internal cohesion, and access to funding – all of which we can help you prepare for.

Our integrated team of corporate finance advisors, solicitors (via 3Volution), and accountants will guide you through every stage.

Why Consider a Management Buyout?

FAQs about Management Buyouts

Can an owner initiate an MBO with their team?

Yes – in fact, many do. We help owners shape the opportunity, approach their team, and prepare the business for the transition.

What if the team wants to initiate an MBO?

That’s just as common. We support management to prepare a professional approach and build a compelling case for the owner.

What if the business can’t afford to fund the whole deal upfront?

We structure deals over time – using staged payments, deferred consideration, or earn-outs – to make the deal work.

Can we buy the business without personal guarantees?

We’ll help structure the deal and find funders who minimise or avoid personal exposure wherever possible

What funding options are available for MBOs?

Funding can include private equity, bank debt, asset-based lending, and vendor finance. We help source and negotiate the right mix.

Do we need a valuation before we begin?

Yes – a valuation is key to setting expectations and structuring the deal fairly for all parties.

What role does the seller play in the MBO?

That varies – some remain involved on a transitional basis, others exit fully. We help structure this to suit both sides.

Can we do an MBO if the seller hasn’t already planned it?

Absolutely. Many MBOs start with a proactive conversation from the management team. We can help you prepare for and approach that conversation.

Do both sides need their own legal support?

Yes – even when the deal is friendly, it’s important each side gets independent legal advice. Our 3Volution team can act for either side, or refer one party elsewhere if needed.

How long does an MBO process take?

Most MBOs complete within 4–9 months, depending on complexity, funding, and deal readiness.
“ I'm delighted to be joining forces with K3. We pride ourselves on delivering a high-quality service and we can add greater value to our clients through the provision of K3's broad range of advisory services. Businesses are facing unprecedented levels of financial hardship and we are now in an even stronger position to help businesses navigate the current economic storm." Dexterity Partners played a critical role in managing the complete sales process, from negotiation to legal completion. This enabled me to remain focussed on the business whilst having an experienced sounding board who understood all the issues. Dexterity Partners unique approach with a single point contact controlling the whole process, improved the final agreed value and terms of the deal. Michael Chamberlain
Founder and director at Chamberlain & Co.
“ After 30 years of growing my business from a start up, understanding a sale process was different from anything I had previously done. Dexterity Partners with their one point of contact helped guide me through the process and avoid the pitfalls I never knew existed. David
Building Products Manufactruer
“ After working with Dexterity Partners their "Fit to Sell" process highlighted the opportunity to grow my business via a merger with a similar business. They helped me find funding to enable me to gain the benefits of a sale whilst keeping control. Chris
Construction & Home Improvements
“ Our business was severely impacted by COVID and a sale looked like the only option. The "Fit to Sell" review resulted in a new strategy to be designed and refinanced. The "Fit for the Future" review highlighted a greater value if we focused on additional sales growth until a more favourable market environment exists to sell the business. It was pleasing to note that Dexterity Partners were not pushing a sale only but provided us with strategic options. David
UK Retailer

Our Services


Selling a Business in the UK

Buying a business in the UK

Business Exit Strategy

Free Business Valuation

Selling a business to family

Management Buyout (MBO)

Get in touch

Contact our team at Dexterity Partners today for assistance with selling your business, let us help you sell your business.