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Corporate finance:
Management buy-in

If you have got the drive to run your own company, then we can help you make it happen.

The starting point is to find the right target company. It must be one which will enable you to capitalise on your skills and experience. It should preferably be in an industry where you have expertise and experience (although in some cases this is not essential). And it should be of a size that is appropriate to your ability and your ambition. How do you find such a company? Cassons have a researcher as part of our corporate finance team, supported by a vast database of corporate information. We can help you find a suitable target and make approaches on your behalf. More likely we will find a target through our network of fellow corporate finance professionals, with their own clients looking to sell out, or through certain specialist registers.

We will advise you how the deal can be done, and we will guide you through the whole process. It can be a long and difficult process because, as you realise, you are actually trying to do two deals. You need to negotiate the purchase from the owners. And you have to attract, and agree terms with, investors and other backers.

What is the target business worth? We will advise you. Negotiating with the vendors is a particular strength. When you have agreed a deal, we will carry out due diligence for you, to ensure that there will be no nasty surprises.

You need financial backing, and sometimes a deal can be financed with borrowing alone. (That may include not only bank borrowing but also more sophisticated products, such as invoice discounting or asset finance.) But usually you need a venture capitalist or private equity firm to invest alongside you as shareholders. (They may also provide other finance, such as a subordinated loan.) You want to retain the largest possible shareholding; but outside investors are entitled to an attractive return commensurate with the capital they are investing and the risk they are taking. Our skill lies in devising the right structure, finding the right backers, and creating a deal that works for everyone.

Our corporate finance team works with other specialists in the firm to provide you with the complete service. You need insurance against the death or illness of key people. This is also the right time to put your personal financial planning and estate planning in order. Our financial services and tax planning colleagues work alongside our corporate finance team to offer these services.