Andrew Grantham

Raising finance for MBIs

A Management Buy-In (MBI) is a transaction where a new management team, previously unconnected with a business, looks to buy out the existing owners and take control.

This differs from a management buyout transaction (MBO) where usually the existing second-tier management, who have full working knowledge and experience of running the business, buy out the owners.

In many cases MBIs can be a successful way for a vendor to exit the business, particularly where the incumbent management team are unwilling or unable to buy the business in an MBO.

Big isn’t always best in business!

Many small and medium sized companies think they have hit the big time when they get their first order from one of the major retailers. Unfortunately it can end up being their downfall. Read on to find out why.

Most SMEs, regardless of what they have specified in their own terms and conditions of sale, will be forced to accept the terms and conditions of purchase to deal with the major players which can be fraught with potential pitfalls

Here are just a few to be wary of and the potential pitfalls for a small business or SME:

What to look for in an Invoice Finance provider

With a plethora of invoice finance providers out in the marketplace, ranging from large bank-owned machines to small, niche providers, it is important that business owners make the right choice of provider for their business.

Whilst the products are very similar, the delivery of the service varies greatly and can be critical to the success of a business.

The importance of the following can often be overlooked, as many businesses focus purely on price, and can cause problems down the line.

When is a pound not always a pound?

The simple answer is when it is owed by a debtor!

All the hard work has been done; the product or service has been delivered on time and at the agreed price and all that remains is for the customer to pay.

It sounds simple, but, until the hard cash is in the bank, a pound of sales on the books might not be worth a pound of cash in the bank!

There are several issues which can surface and often end up hitting a business' finance hard if proper systems are not implemented at the outset. These include:

Is that light at the far end of the tunnel?

With good economic news emerging recently, are we finally seeing light at the end of the very dark tunnel? Possibly, but for many businesses, they’ll need to make sure it’s not a freight train coming the other way!