The MBO Guide for Management Teams
Real-life lessons from 20 years in the front line of private equity
2nd Edition
Published on 23. September 2011
Book
Paperback/Softback
266 pages
978-1-906659-00-4 (ISBN)
Description
This book offers an exclusive and remarkably candid look at management buyouts and buy-ins from a man who has had an intimate role in 11 such deals since 1991. Acting in a variety of positions - chairman, executive director, non-executive director, personal coach to a managing director - Andy Nash has seen it all, and in this completely updated second edition again makes a serious and potentially turgid subject both easy-reading and unexpectedly entertaining. MBOs/MBIs are inherently risky, with failure rates being relatively high. This guide is aimed at prospective and existing managers of such a deal. By detailing all the intricacies and blind spots involved, it aims to increase their chances of success. It looks at how best to establish and accomplish your aims; as well as at elephant traps, bad practices and risks, and how to avoid them. The deals featured vary greatly: from staggering success to the verge of financial oblivion - and fortunately back again. They range across very different markets: from the world of global drug discovery in mythical Tintagel to heavy metal bashing (dustcarts) in the West Midlands.They have been backed by many different venture capitalists and financed by UK and international banks.
Management buyouts and buy-ins are a high-octane part of the business world. It is a high risk: high reward arena. Metaphorically an MBO/MBI is like fitting an eight-litre V12 engine into an aged VW Beetle and expecting it to perform much better than before, or as someone once colourfully put: "a venture capitalist would expect that if you made love nine times in a night, the baby would arrive in four weeks". With the demands - and the potential rewards - so high, you can't afford to be without this authoritative guide.
Management buyouts and buy-ins are a high-octane part of the business world. It is a high risk: high reward arena. Metaphorically an MBO/MBI is like fitting an eight-litre V12 engine into an aged VW Beetle and expecting it to perform much better than before, or as someone once colourfully put: "a venture capitalist would expect that if you made love nine times in a night, the baby would arrive in four weeks". With the demands - and the potential rewards - so high, you can't afford to be without this authoritative guide.
More details
Edition
2nd edition
Language
English
Place of publication
Petersfield
United Kingdom
Target group
Professional and scholarly
Interest Age: From 18 years
Product notice
Paperback (UK-trade)
Dimensions
Height: 234 mm
Width: 156 mm
Thickness: 14 mm
Weight
376 gr
ISBN-13
978-1-906659-00-4 (9781906659004)
Copyright in bibliographic data and cover images is held by Nielsen Book Services Limited or by the publishers or by their respective licensors: all rights reserved.
Schweitzer Classification
Other editions
Previous edition
Book
07/2005
Harriman House Publishing
€119.19
Article not available at the moment
Person
Andy Nash began his career at Cadbury-Schweppes in 1978 after graduating in Economics and Geography from the University College of Swansea. He carried out a variety of sales and marketing roles at Cadburys, progressing to Senior Management where he was ultimately responsible for the Tea and Coffee brands in the group. In 1984 he joined Sterling Heath Ltd., the OTC division of Sterling Drug Inc. as Marketing Controller. A year later, aged 29, he was promoted to Marketing Director. In 1987 he was headhunted to join Taunton Cider Limited on the main board as Commercial Director with responsibility for Marketing, Sales and New Product Development. During his time there the marketing strategies were radically changed causing sales and profits to increase substantially. This is demonstrated by the fact that, with two colleagues he jointly led a successful MBO of the company for GBP72m in 1991. A year later the company was floated on the LSE for GBP156m and then sold to another Drinks company in 1995 for GBP280m. He was the only director of Taunton Cider invited to stay with the enlarged group by its new owners, being appointed Managing Director of the Drinks division - Matthew Clark Taunton Ltd. As Managing Director of the GBP400m turnover company he successfully oversaw the post acquisition integration. In 1997 he decided to move on and pursue a career as a portfolio non-executive director. Since then, as a portfolio Chairman, he has acquired further extensive experience of MBO's, MBI's, turnarounds, & re-financings. At present he is Chairman of Merrydown plc (he led the successful rescue and turnaround in 1998), Photo-Scan plc, and a director of several other private companies. He is also Deputy Chairman of Somerset County Cricket Club.
Content
Acknowledgements About the Author Foreword by Chris Allner, Octopus Ventures Introduction 1. The Market and Some Basic Principles The private equity market Why do a deal? Are you sure you really want to do a deal? How does an MBO/MBI work? How many deals are done in the UK? 2. Finding a Deal How opportunities arise Sources of MBOs/MBIs Private companies Public companies Research Marketing phase 3. Getting in Shape for the Deal The eight Ps A strong and united management team 4. Doing the Deal - a White Knuckle Ride Advisors: assembling your team Auction-busting! Highlights and stages of the six- to nine-month MBO/MBI process Elephant traps to avoid 5. Board Structure and Behaviour Good board/bad board Chairman and non-executive directors Investor relations 6. Running an MBO/MBI What's changed? Mind your four Cs Hit the ground running Post-completion priorities Getting organised: the key areas to focus upon Unique pressures 7. Success or Failure The $64,000 question: what are your chances of success? Common causes of underperformance: what are they? Main drivers of success in MBOs/MBIs The work-out situation 8. The MBO/MBI Scorecard 9. Real Deals Scorecard results Taunton Cider Ltd Tubex Ltd Maybridge plc Webbs Country Foods Ltd Cloverleaf Group Ltd Ashford Colour Press Ltd Dennis Eagle Ltd ICA Ltd The History Press Ltd Tristar Worldwide Ltd Intercontinental Brands Ltd 10. The Exit Desires of management Management: realising cash from the exit Investor needs and expectations Importance of timing Prerequisites Exit timing - what is realistic? Exit value Types of exit Advisors Management's tax planning 11. After the Exit Corporate issues Personal Options 12. 12 Golden Rules for Management Teams Market conditions and outlook Recommended Reading Appendix Example analysis - Taunton Cider Index