Buy-outs & Buy-ins

You want to invest in a business or increase your current share in your business? Then there are many possibilities for buying yourself in. SDM assesses your situation and formulates detailed recommendations concerning the methods that best fulfil your wishes and requirements. We will guide you through the entire process.

A few possibilities:

Leveraged Buy-Out (LBO)
An investor takes over a business with their own means and borrowed money. That capital must be paid back later by the business taken over. Private equity-firms especially use LBOs to take over businesses, to apply a Buy & Build-strategy and to sell it again later.

Management Buy-In (MBI)
The management of a business takes over another business (or one or more departments thereof) with their own means. If they do that with an external financial party, this is called a Leveraged Management Buy-In.

Management Buy-Out (MBO)
The management of a business buys one or more departments or the entire business and continues the activities.

Owner’s Buy-Out (OBO)
A technique in which the owner takes over their own business together with an external investor (usually private equity) via a new company to be formed or a holding company. The owner can secure a significant part of the value of their business via such a transaction. Such a transaction is almost always structured via a Leveraged Buy-Out (LBO).