Helping management teams own the business they run
£1m to £25m of debt funding for management buyouts and shareholder buyouts of profitable UK businesses.
What a management buyout is
A management buyout (MBO) is when the people running a business buy it from its owners. Most MBOs are funded with a mix of senior debt from a lender, the management team's own investment and, often, part of the price paid to the seller over time. Ignite provides the senior debt: £1m to £25m, at up to 4x EBITDA.
When an MBO makes sense
01
A founder planning their exit
Selling to the team that already runs the business keeps it independent and gives customers and staff continuity.
02
A shareholder leaving
Buying out a retiring or departing shareholder keeps ownership with the people running the business.
How a typical MBO is funded
| Source | What it is | Ignite's role |
|---|---|---|
| Senior debt | A term loan, repaid from the business's cash flow | What we provide: £1m to £25m |
| Management investment | The team's own money, showing commitment to the plan | Not provided by us |
| Deferred consideration | Part of the price paid to the seller after completion | Structured alongside our facility |
| Private equity | Equity from an investor, in larger or more stretched deals | We lend alongside sponsors |
What we look at
The strength and experience of the management team, the business's cash flow and how dependable it is, and the plan for the first years after the buyout. As entrepreneurs ourselves, we know what that decision involves for both the team and the founder.
Questions
Questions about MBO finance
How much can a management team borrow for an MBO?
From Ignite, between £1m and £25m, at up to 4x EBITDA
Will the management team have to give up equity to Ignite?
No. We provide debt, so ownership stays with the management team and any other shareholders.
How long does an MBO take to fund?
Indicative terms within days of receiving the headline numbers; and funding can be completed in weeks.
Do we need an adviser?
Most MBOs run with a corporate finance adviser, and we recommend one, but we're happy to talk to management teams first.
Planning a buyout?
Tell us about the business, the team and the timetable. We'll tell you quickly whether we can fund it.