EV - Equity Ventures

Management Buy-Out information.

Venture Capital
Private Equity

Corporate Finance

Rescue Capital


Tel: 07852 353500

Tel: 01242 575686



How do you do a management buyout ?


Profit adjustments are going to be a key part of negotiations with venture capitalists and with lenders in relation to banking covenants.

You need to prepare for these in advance.


The following profit adjustments are some examples:


Lost or deferred income

Selling price reductions or cost price increases

Break costs on leases

Additional supply chain costs and associated delays

Extra cleaning costs

Extra IT costs and training to support working from home

Costs of raising additional finance

Redundancy costs

Inefficiencies due to ESG costs Additional advisory fees

Call: 07852 353500

We help managers and owners value businesses and do management buyouts




We will try to help you raise finance in stormy seas.


There are over 350 venture capital firms to navigate round in the UK alone - we have a list and database - so you just need to call us.


You need a guide to keep you off the rocks - there will be many wrecks in 2022 even as the economy recovers.


But take heart shipmates, there is lots of money looking for deals.

Expansion capital, buy-out capital, rescue capital - all afloat on a sea of opportunity - so take this tide at its flood lest you spend the rest of your lives mired in the shallows.



Turning managers into owners - it's what we do

As experts on venture capital, management buyouts and private equity - we will help you fund finance and structure a management buyout, arrange expansion capital and other venture capital transactions.


What is your business worth to a venture capital firm?

Private equity firms use detailed spreadsheet models in valuing and structuring buyouts.


The EV model has been used to fund and structure many buyouts and has been purchased by many institutions, companies and banks, including The Bank of England.


How does a small team buy a large company in a management buyout?

The way that a management team can fund and finance an MBO is now well established. The existing business is known as the "Target" and the MBO company is referred to as "Newco". Newco is funded by money from the management team, venture capitalists, and banks. Because the venture capital firms invest in shares as well as loans or preference shares they get a lower percentage of the economic ownership of the company than the MBO team for each pound invested. By varying the investment proportions management can have a significant financial stake in a large company for relatively little money - provided the company increases in value after the deal is done.


What you should do to start the MBO process

The next step is to contact us by phone or email. You can approach us with just an idea for a transaction, an executive summary, or a full business plan.


If we think you have an interesting proposition we will arrange to meet you. This can be at your premises or elsewhere; and we are happy to meet outside normal office hours if that is more convenient or you are worried about confidentiality issues.


Experience of all aspects of management buyouts

We prefer to invest alongside management and on similar terms to them. This helps align our interests with yours. We won't encourage management teams to produce profit forecasts that they don't believe in or to pay more for a business than sensible. This approach comes from our experience and background in banking, consultancy as well as being venture capitalists for over 20 years. We also did our own management buyout - so we have seen all sides of transactions.



Consider an MBO now and call for an introductory conversation.


Call 07852 353500

No advance deal fees and we will still co-invest to show confidence in management teams we help arrange, fund, structure or introduce to VCTs.


Call or send an email and we'll talk with you - this can be in London or elsewhere to suit you and your confidentiality requirements. It can also be out of normal office hours if that is more convenient for you.

And of course in 2022 by video.

Call 07852 353500

David Tallboys - director


David worked as an investment banker at Kleinwort Benson and as a venture capitalist at Schroder Ventures and Security Pacific.

When not doing deals he likes to visit the Lake District - where this photo was taken.


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