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	INVESTMENT PROCESS > MANAGEMENT BUY-IN
THE PROCESS TESTIMONIALS EXPANSION CAPITAL MANAGEMENT BUY-OUT (MBO) MANAGEMENT BUY-IN (MBI)

		A Management Buyin (MBI) is a great way to leverage your experience and industry knowledge to gain a significant portion of business for a relatively small investment. However MBIs are by their nature a lot riskier than an MBO as management enters the business without a clear view of what they face.
		ADVANTAGES OF AN MBI FOR THE SELLER: There are a number of reasons that an MBI bid can be more attractive to a seller than a trade sale:
			Strategic reasons - the vendor may not wish competitors to be in control.
			Confidentiality - the vendor may not wish to let competitors have access to sensitive information that would be disclosed during a trade sale process.
			Pricing - Equity Partners can provide finance and deal structuring advice which may be the best deal in terms of price optimisation.
		WHAT IS REQUIRED:
			A clear growth strategy going forward.
			A willing vendor with realistic price expectations.
			A strong selling proposition or a sustainable competitive advantage.
			A strong well balanced management team, preferably with an identified leader with an entrepreneurial outlook.
			A management team with extensive industry knowledge and a history of success.
			A management team willing to invest in the business.
			A commercially viable business capable of supporting an appropriate funding structure.
			An exit plan.
		HOW TO DO IT:
			Contact us to discuss the opportunity. The earlier we become involved in the process, the more help we will be able to give in structuring the deal. If the opportunity is not for us, we will give you up-front feedback and suggest alternative strategies/sources of finance.
			Formulate your plan.
			Make your pitch to the vendor. (We can often assist in broaching the subject with the parent company.)
			Prepare a business plan.
			Agree terms with Equity Partners on how the deal will be structured.
			Agree terms with the vendor.
			Assist EP in conducting due diligence.
			Obtain debt finance.
			Legal documentation.
			Make your vision a reality.
		WHY EQUITY PARTNERS? MBIs can be a complicated process of negotiation so it makes sense to get a party involved early in the process who can help obtain the best terms. Undertaking the process with Equity Partners offers the following advantages:
			We can assist you with the initial valuation and structuring, feasibility assessments and forecast preparation.
			The early involvement of Equity Partners can save valuable time and allow you to concentrate on the numerous other aspects of the deal.
			We have significant experience in negotiating MBIs and will be on your side of the table in the negotiation.
			We have been involved in growing companies across a range of industries and can help put that experience to use.
			We can help with the recruitment of a Chairman and other core members of the board and/or management team.