Your options

Deals explained

As an owner-manager, you'll find a wide range of options when it comes to selling your business. Here's an explanation of the most common options:

• MBO
  Management Buy-Out Where the existing management team, usually with the backing of an institutional investor, buys the business.
• MBI
  Management Buy-In An outside team of managers invests in the business, often with institutional backing.
• VIMBO
  Vendor initiated Management Buy-Out A management buy-out which was initiated by the vendor.
• BIMBO
  Management buy-in management buy-out A mixture of outside managers and current employees getting together to buy your business.
• AIM
  Float your company on the Alternative Investment Market A form of public listing, which is generally less testing and costly than a full listing. It offers owner-managers the opportunity to sell some or all of their shares.
• Cash-out
  Taking cash out of a company through bank loans or other options. In this type of deal, shareholders borrow money against the value of the business, but don't sell any shares.
• Earn-out
  An earn-out usually involves the vendors continuing to work in the business. It includes a clause written into a sale, stating that the vendors will receive further payment if the business they have sold achieves specific performance levels.
• Trade sale
  Sale to another company or individuals Where the company is sold to a competitor or other firm.