Deal Types & Buyer Profiles
6 articles
Trade Sale
A sale to another recruitment or HRservices businessoften motivated by geographic expansion, entry into a niche, or consolidation efficiencies. Trade buyers may…
Private Equity (PE)
PE houses invest in highgrowth, cashgenerative companies, typically targeting a 35year exit horizon. In UK staffing, PE may fund a management buyout (MBO) or ba…
Management Buy-Out (MBO)
An MBO occurs when the incumbent management team acquires the business, funded by bank debt, private equity or vendor loan notes. It allows founders to realise …
Management Buy-In (MBI)
In an MBI, an external management team acquires the business, often because the agency lacks a successor. Sellers may face higher execution risk but can achieve…
Vendor-Initiated MBO (VIMBO)
Here, the vendor invites management to buy the company, often structuring the deal with significant vendor loan notes and deferred consideration. VIMBOs can red…
Employee Ownership Trust (EOT)
An EOT enables 100 % sale of shares to a trustee for the benefit of employees and is currently free of capital gains tax if qualifying conditions are met. It pr…