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The MBO Guide for Management Teams

Real-life lessons from 20 years in the front line of private equity

By Andy Nash

Paperback £49.99 / $74.99
eBook £25.00 / $30.00
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The MBO Guide for Management Teams

Real-life lessons from 20 years in the front line of private equity

By Andy Nash

Jacket text

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.

About the author

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 £72m in 1991. A year later the company was floated on the LSE for £156m and then sold to another Drinks company in 1995 for £280m. 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 £400m 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 and 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.

Media coverage

From Corporate Financier Magazine:

Fraught With Danger – A management buyout may fail for many reasons between its conception and completion. What are the most common pitfalls? By Andy Nash Management As chairman of Morgan Grenfell private equity, Lord Robert Smith said he backed three things in a management buyout (mbo): management, management and management. Good management can improve… Read more »

Read More…

From Media Review:

Fraught With Danger – A management buyout may fail for many reasons between its conception and completion. What are the most common pitfalls?14th October 2011

Read More…


About the Author
Foreword by Chris Allner, Octopus Ventures


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
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
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
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
Exit timing - what is realistic?
Exit value
Types of exit
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
Example analysis - Taunton Cider

Published: 23/09/2011
Edition: 2nd
Pages: 266
Formats: paperback - ISBN 9781906659004
ebook - ISBN 9780857195456
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