Selling your business through a management buyout

What is a management buyout?

A management buyout (MBO) involves the existing management team of a business purchasing it from its owners, who are looking to exit the business.

In most cases, an MBO involves the management team that has grown with the business who will then take full control and ownership.

Benefits of a management buyout

Management buyouts often provide a simpler transition of ownership as opposed to a third-party buyer.

Many of them are planned over long periods of time, enabling the ‘new’ owners to fully integrate with the business.

Employees, existing customers and suppliers are likely to feel reassured by an MBO option, as it will ensure business continuity.

What to consider before taking the plunge into a management buyout

In some cases, those undergoing a management buyout underestimate the toil it can take on both parties.

The owner goes from boss to former chief, and the management team transition from employees to owners.

This shift in power can cause problems if not dealt with carefully.

How does a management buyout work?

Typically, a management buyout is seen as an in-house takeover, however the legal and tax situations do not allow for that.

Incoming and outgoing parties may not realise that it is an intricate process requiring the expertise of solicitors to advise on the best routes to take.

A management buyout can be a long time in the planning, therefore it is advisable to engage your team as soon as possible to ensure a smooth transition and a successful exit.

Enjoyed this? Read more from Kerry Southworth, Harrison Drury

Latest news

1

Rise of the multi-skilled workforce as employers ‘reimagine’ jobs to fill skills gaps A VR headset helps construction learners explore CAD plans

Rise of the multi-skilled workforce as employers ‘reimagine’ jobs to fill skills gaps

09 Jul 2025

2

Walker Fire accelerates growth with two strategic acquisitions and launch of new digital platform Walker Fire

Walker Fire accelerates growth with two strategic acquisitions and launch of new digital platform

08 Jul 2025

3

10th year of growth for Begbies Traynor Ric Traynor of Begbies Traynor

10th year of growth for Begbies Traynor

08 Jul 2025

4

Iconic Lancaster Inn gets £600K makeover New bar at Toll House Inn at Lancaster

Iconic Lancaster Inn gets £600K makeover

08 Jul 2025

5

FWP completes life-changing youth support project Boat House Youth Centre

FWP completes life-changing youth support project

08 Jul 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
LBV123 July/August Launch Event
Lancashire Business View magazine launch
Networking
16 Jul 2025

LBV123 July/August Launch Event

Burnley College University Courses Building, Burnley, BB12 0AN

08:30 - 10:30

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

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
unnamed (2).jpg.jpg
LBV Hub Seminars
09 Jul 2025 - 09 Jul 2025

Tri-Site Survey Equipment Showcase

Crow Wood Hotel, Burnley, BB12 0RT

09:30 - 16:00

Blackburn Cathedral hosts Champagne and Diamonds Event with Ainsworth Jewellers
Champagne-Jewellery 10 07 25_page-0001.jpg.jpg
LBV Hub Awards
10 Jul 2025 - 10 Jul 2025

Blackburn Cathedral hosts Champagne and Diamonds Event with Ainsworth Jewellers

Blackburn Cathedral, Blackburn, BB1 5AA

18:00 - 20:30

Choose Chorley for Business - Talent Reimagined Business Breakfast
talentreimaginedbb.png.png
LBV Hub Seminars
10 Jul 2025 - 10 Jul 2025

Choose Chorley for Business - Talent Reimagined Business Breakfast

Strawberry Fields Digital Hub, Chorley, PR71PS

08:00 - 10:30

Shaping Preston's future by remembering its past
1750160034867.png.png
LBV Hub Networking
16 Jul 2025 - 16 Jul 2025

Shaping Preston's future by remembering its past

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 20:30

Chamber Summer BBQ
LBV Hub Social
17 Jul 2025 - 17 Jul 2025

Chamber Summer BBQ

The Borough, Dalton Square, Lancaster, LA1 1PP

17:30 - 20:00

Preston Tech Connection: Web3 is Dead. Or is It?
July Longer Banner.jpg.jpg
LBV Hub Networking
29 Jul 2025 - 29 Jul 2025

Preston Tech Connection: Web3 is Dead. Or is It?

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Preston Freelancer Meet-Up: July
Longer July Banner.jpg.jpg
LBV Hub Networking
31 Jul 2025 - 31 Jul 2025

Preston Freelancer Meet-Up: July

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

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

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 LBV122 Online Graphic
Subscribe now

Weekly news bulletin