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Home  Merger and Acquisition MBO and MBI - 7 Principles to Follow
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MBO and MBI - 7 Principles to Follow |
MBO and MBI 7 principles
1 Build a strong, knowledgeable multi-skilled team that share the same goal and have enjoyed previous success in their own discipline.
2 Research the business and gather evidence that supports a case for the business being viable outside of the control of a parent company.
3 Agree at an early stage the method of purchase. Purchase the share capital or purchase selected assets.
4 Do not assume anything.
5 Build a good working relationship with all parties involved in the transaction.
6 Negotiate hard the purchase price, be well-informed to counter factors that may influence the asking price.
7 Be prepared to act quickly. A quick sale may influence the purchase price and cause less disruption to operations
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