We conduct advisory business concerning the formulation of plan and the execution, of the management buyout, leading to the non-public company.
The management buyout (MBO, Management Buy-Out) means that the president or the management of a company obtains substantially the company’s own shares by transfer from the shareholders of the company thereby becoming the owner-manager.
That the MBO is executed in a listed company means, in many cases, that it is at the same time accompanied by becoming the non-public company.
In order to carry out MBO, it is necessary to have expertise of various fields which include the evaluation of corporate value, the formulation of plans to obtain financing from a fund or a financial institution and make repayments to them, the legal risk, accounting risk, the examination of tax risk and the examination of problems from the viewpoint of the disclosure.
We surely support the MBO to be executed by clients, based on our abundant experience in the field of finance.
Financial advisory business and consulting services
Based on abundant experience in the corporate realignment, we provide our client with the best solution, drawing up a plan for MBO, framing the project and conducting the implementation support business, in concrete terms.
Clarification of the purpose ⇒ Drafting of the basic strategy for MBO ⇒ Drafting of the implementation plan ⇒ Implementation support business
Due diligence duties
In implementing MBO, there is a need to understand correctly the details of business and, for that purpose, to conduct appropriately the inspection of the business model (business due diligence), the inspection of the legal risk (legal due diligence) and the inspection of the financial risk (financial due diligence). Especially, the financial due diligence is indispensable for the corporate value measurement (stock price computation), and we have our strength in this field.
Business value computation duties / cash flow analysis
When we perform corporate realignment, there is a need to evaluate each business appropriately.
In addition, when we get a loan from an MBO fund or a financial institution, the cash flow analysis becomes important from a point of view whether the necessary funds can be repaid.
The drafting of the basic strategy for MBO
The scheme of the MBO covers a very much wide range.
We select the most suitable scheme in line with the purpose of each corporate -realignment.
The drafting of the implementation plan
We examine concrete scheduling after having decided on the MBO strategy.
At this time, we make a more thorough examination of various risks.
The implementation support business
We conduct the implementation support business according to the implementation schedule.