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MBO and LBO team preparation

Preparing and executing a management buyout (MBO) or Leverage Buyout (LBO) is complex and can be destabilising for management teams. During this time investors and advisors must be found; executives, employees, customers and shareholders must be kept on side; and the executive team must develop a credible, compelling, leading edge business proposition – All whilst continuing to deliver shareholder value through business as usual.

The management team is often the major contributor to value creation. Its members play a central role in delivering the business plan on which the decision to invest is based. Unfortunately, they can also destroy value as well as creating it. The roles assigned to them should be cohesive and support the business plan and the team should quickly develop the flexibility and breadth of the required functional skills.

At Crelos we have a thorough understanding of MBOs/LBOs and have advised coached and mentored executives and board members through this complex journey. We work alongside financial advisors whose role is to help the team quickly realise the value of the organisation – We help management teams anticipate the questions they will be asked at business, team and individual level by potential investors and prepare for them.

 

Our unique services

Because every MBO/LBO is different we have developed a unique set of services which addresses both the needs of each individual executive and those of the team as a whole. We act on behalf of the MBO/LBO team and/or the investor, remaining totally objective. We work with the team members to help them through the process of developing value enhancing growth strategies, creating comprehensive business plans and finding and successfully securing the capital necessary for the buyout. In doing so, we accompany them from idea initiation to deal completion. Along the way we identify and mitigate key management risks which could impact the success of the investment and facilitate people decisions.

  • Confidential executive coaching: Our methodology combines:
    • A pragmatic business approach
    • Sensitivity to the individual’s needs and issues
    • Industry expertise
    • Personal experience in the challenges management are facing
    • Well respected coaching qualifications and models, and
    • A comprehensive network of contacts in the industry

    By using an innovative and often challenging environment we help executives generate new ideas and perspectives and give them the tools to develop, flourish and substantially enhance their performance as part of the new MBO/LBO executive team.

  • Team facilitation and creation of a high performing team:
    We act as catalysts helping the CEO and key executives to predict the major risks, thoroughly consider alternatives and ultimately help them achieve their stated goals. To be successful, boards must be experts at Integrated Thinking. In complex and competitive organisations the board must benefit from the diversity of its individual members each bringing critical and challenging thinking. The more diverse the thinking the more the opportunity for superior strategy to evolve. However, the challenge comes not just in the breadth of opinion and information but in the board’s ability to avoid sham conversations, “Group Think” and “power dynamics”. Most boards need to be schooled in the behaviours required to affect proper strategic thinking. This requires them to truly understand the mental processes and necessary behaviours to maximise the intellectual horse-power of the team. A proportion of any boardּs time should be committed to enhanced awareness of inadequacies, weaknesses and strengths
    Our senior consultants support leading teams by facilitating their interactions..

 

 

Back

Ali Gill CEO and Client Director for the Private Equity and Venture Capital sector

'80% of the 1,000 plus VC-backed firms in the UK are still loss making, and 25% have no revenues. The financial crisis and historic under performance have caused investment in UK VC funds to dry up and the chief contributor to poor performance is, to one degree or another, the failure of the management teams of portfolio businesses.'