5 Mistakes in Management Buyout (MBO) M&A Transactions

What are the common mistakes made in management buyout (MBO) transactions? How can you successfully structure an MBO? How do you avoid creating internal disruption when attempting to sell your business to management? How do you decide when an MBO is right for you? What are the primary differences in deal structure when selling to management vs external buyers. In today's video, we cover the five common mistakes seen in MBO negotiations:
1) Selling to inexperienced management.
2) Have an unrealistic valuation resulting in negotiations falling apart
3) Expecting the MBO deal to be the same as if you were to sell to an external buyer
4) Trying to sell your business to external buyers while pursuing an MBO
5) Selling to a misaligned employee group
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If you are looking to sell your business and would like to learn more about Roblee Capital, please reach out to me for an introductory call. You can contact me through email or through my LinkedIn at;
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Roblee Capital is a Toronto-based M&A Investment Bank focused on serving companies with revenues between $1MM to $100MM primarily offering sell and buy-side M&A services. We work with Canadian-based business owners looking to sell their lower mid-market business. If you are a Canadian business owner looking to sell or buy, please reach out so we can connect at the link below:
www.robleecapital.ca/

[@galaticoera7022]

Hey Finance Kid, I love your videos.
What's the difference between commercial banking and small business banking?

[@financekid3163]

Small business banking usually works with smaller businesses, they have lower lending levels and in most instances small business bankers can only do secured lending (working capital, real estate or equipment backed loans) whereas commercial bankers are working with larger businesses and can usually do unsecured loans (cash flow based).

[@galaticoera7022]

Can you break into commercial banking from retail banking?

[@mattheusmegdom]

Great Video !

[@financekid3163]

Thanks!

[@francisaung6587]

Canon rock

[@galaticoera7022]

What's the compensation/ career path like in small business banking?
Is it similar to commercial banking or do commercial bankers earn more due to them working on larger deals?
Do small business bankers still get a business and is it easier to break into than commercial banking?

[@financekid3163]

In most instances the ceiling for small business bankers is lower. You get quicker client interaction but smaller variable compensation based on bringing in deals. I have seen small business bankers get into CB and move up market, its a natural path of progression internally within the banks.