Low risk VIMBO offers value and flexibility

By Steve Bell, Pierce

11 Jul 2023

Steve Bell at Pierce

In these increasingly uncertain times, many business owners are looking at ways in which to secure value for their shareholding having invested time and resource into building a robust business.

Many vendors remain cautious when considering a sale to a competitor. The opportunity to undertake a Vendor Initiated Management Buy Out (VIMBO) can provide low risk opportunity for the shareholders to realise the value of their investment.

We recently completed a VIMBO which saw the management team acquire a business they had worked in for more than 10 years.

The vendor had indicated that they wished to remain working in the business and the VIMBO opportunity allowed them to secure a significant value for their investment at preferential tax rates.

Through a supportive funder the company was able to raise a reasonable level of finance to provide an immediate cash lump sum to the vendors alongside secured loans and a retained shareholding.

Through the retained equity stake the vendors and management team were aligned in the continued success of the business, the loan notes provide flexibility in the funding structure to deliver the required valuation, reduce the third party debt requirement and provide a continued annual cash income over an extended period.

An MBO doesn’t always suit all situations, however where there is a strong management team and where the vendor is willing to remain with the business over a reasonable duration, a VIMBO can provide a low risk, controlled way to realise the value of their business.

Through our knowledge of the funding markets the corporate finance team at Pierce can provide clear advice on whether a VIMBO can be delivered and can support you through the transaction.

Enjoyed this? Read more from Steve Bell, Pierce

Latest news

1

MJV Solicitors announces Lanna Conboy as assistant solicitor Lanna Conboy

MJV Solicitors announces Lanna Conboy as assistant solicitor

02 Sep 2025

2

Eden Project Morecambe progress continues as site investigation work begins John Pye at the Eden Project

Eden Project Morecambe progress continues as site investigation work begins

02 Sep 2025

3

MGS Technical Plastics in running for seven awards MGS Technical

MGS Technical Plastics in running for seven awards

01 Sep 2025

4

Ultimate Visual Solutions (UVS) launches 'industry first' displays featuring integrated controllers Steve Murphy UVS

Ultimate Visual Solutions (UVS) launches 'industry first' displays featuring integrated controllers

01 Sep 2025

5

Sowena Group adds firepower with two senior hires and heralds move to bigger office Gemma Quaye and Beth Harris

Sowena Group adds firepower with two senior hires and heralds move to bigger office

01 Sep 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Sub36 Networking - Follow the signs
Sub36 Deaf Village Social1200
Networking
17 Sep 2025

Sub36 Networking - Follow the signs

The Deaf Village, Blackburn, BB2 5EN

10:00 - 12:00

LBV124 September/October Launch Event
MBP Arc Cinema Preston Opening 205
Networking
18 Sep 2025

LBV124 September/October Launch Event

The Arc Cinema, Preston, PR1 2BL

08:30 - 10:30

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Tri-Site Survey Equipment Showcase
Linkedin Cover.jpg.jpg
LBV Hub Seminars
03 Sep 2025 - 03 Sep 2025

Tri-Site Survey Equipment Showcase

Harewood House , Leeds, LS17 9LG

09:30 - 16:00

Longridge Soap Box Derby
Screenshot 2025-06-10 090035.png.png
LBV Hub Fundraisers
14 Sep 2025 - 14 Sep 2025

Longridge Soap Box Derby

Berry Lane, Longridge, PR3 3WH

10:00 - 16:30

Preston Tech Connection - The Ultimate Tech Quiz!
Preston Tech Connection Sept 25.png.png
LBV Hub Networking
16 Sep 2025 - 16 Sep 2025

Preston Tech Connection - The Ultimate Tech Quiz!

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:00

The Business Network Central & East Lancashire
LBV Hub Networking
17 Sep 2025 - 17 Sep 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

Preston Freelancer Meet-Up: September
Sept Freelancer (1).png.png
LBV Hub Networking
23 Sep 2025 - 23 Sep 2025

Preston Freelancer Meet-Up: September

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Speed Networking with BNI
2.png.png
LBV Hub Networking
24 Sep 2025 - 24 Sep 2025

Speed Networking with BNI

Chorley Football Club, Chorley, PR7 3DU

16:00 - 19:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV 123 Online Graphic
Subscribe now

Weekly news bulletin