Management BIMBO

Need money to run or expand your business?

 

BIMBO or Buy In Management Buy Out is similar to MBI and MBO where a management team buys out a business with the help of financial backers. However, unlike an MBI or MBO – where either the firm's managers (MBO), or outside managers (MBI) acquire the equity holding of existing owners, in BIMBO both outside managers and the current management come together to complete the transaction process.
If you are part of a management team and wish to acquire ownership in the same company with the help of outside management team, we would like to hear from you. We at V4G can arrange equity participation for the existing management with the help of external funding, either through private equity or bank finance. We work with successful entrepreneurial executives who have decided to be in an ownership position rather than employment and actively seeking external financing.

 

Challenges

  • BIMBO transactions are technically complex, time consuming and have an element of risk associated with them
  • Estimation of investment by management teams – both for the team within the company and from outside, along-with outside financing required from capital providers
  • Calculating the extent of external funding required – is the business operating cash flow positive? Can it sustain high levels of debt and still manage to deliver superior returns to equity investors?
  • Retention of key management people post-transaction

Solutions

  • Using in-house expertise, we employ cutting edge research techniques and suggest solutions to managers that will result in successful deal transaction
  • Deal structuring solutions with optimum debt and equity ratios
  • Advising both financiers and managers and negotiating on price and the terms of deal
  • Creating a business plan that maximizes returns on capital

Benefits

 

There are many deal potential hazards in a transaction; while some can result in higher costs, other may kill the deals altogether. We provide you with realistic business valuations based on quality of earnings and suggest areas of improvement so that you come out on tops.

 

Sign up as a Management Bimbo and learn more about potential investors that are best suited to your requirements.