Critical Success Factors For Buy-Outs

Inhaltsverzeichnis (Table of Contents)

• Executive Summary
• Introduction
• Literature Review
• Definition and Background of individual Buy-Out forms
• Management Buy-Out (MBO)
• Management Buy-In (MBI)
• Leveraged Buy-Out (LBO)
• Buy-In-Management-Buy-Out (BIMBO)
• Employee-Buy-Out (EBO)
• The Buy-Out Market in the UK and Europe
• Buy-Out Investments in Germany
• Structure and Substantial Elements of a Buy-Out
• The Process of a Buy-Out Transaction
• Elements of the Financing Structure
• Critical Success Factors
• Checklist for Success
• Most Important Success Factors for the Management
• Most Important Success Factors for the Financial Investor
• Key Success Factors
• Well-balanced and Experienced Management Team
• Balanced Financing of the Buy-Out
• Agreement in Negotiations and Aims
• Equity Participation of the Management
• Conclusions and Outlook

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This dissertation focuses on critical success factors for buy-outs, exploring why they are a prevalent financing model. Its primary objective is to test theoretical arguments from the literature review through a practical case study analysis. The main themes of this work include:

• Different forms of buy-outs (e.g., MBO, LBO, MBI)
• The Buy-Out market dynamics in the UK, Europe, and Germany
• The process and structure of Buy-Out transactions
• Key success factors for Buy-Outs, including those for both management and financial investors
• The application of Buy-Outs in various business scenarios

Zusammenfassung der Kapitel (Chapter Summaries)

• Executive Summary: This section provides a brief overview of the dissertation, highlighting the objectives, methodology, and key findings. The analysis of a Management Buy-Out case study (VITALIS Ltd.) serves as the basis for combining theoretical and practical insights to formulate a “checklist for success” for Buy-Outs.
• Introduction: This chapter introduces the topic of Buy-Outs and sets the stage for the subsequent discussion. It emphasizes the relevance and growing popularity of this financing model.
• Literature Review: This chapter delves into the definition and background of various Buy-Out forms, including Management Buy-Out (MBO), Management Buy-In (MBI), Leveraged Buy-Out (LBO), Buy-In-Management-Buy-Out (BIMBO), and Employee-Buy-Out (EBO). It explores the characteristics and applications of each type. The chapter also examines the development of the Buy-Out market in the UK and Europe, highlighting its significant growth.
• Structure and Substantial Elements of a Buy-Out: This chapter explores the complete process of a Buy-Out transaction, from initiation to completion. It outlines the five stages of the process and emphasizes the crucial role of participation models, due diligence, and contractual agreements. The chapter also examines the financing structure, including various forms of equity capital and debt financing.
• Critical Success Factors: This chapter delves into the critical success factors for Buy-Outs, both from the perspective of the management team and the financial investor. It presents a checklist for success based on both theoretical and practical insights. The chapter discusses key success factors such as a well-balanced management team, balanced financing, agreement on goals, and equity participation of the management.

Schlüsselwörter (Keywords)

Buy-Out, Management Buy-Out (MBO), Leveraged Buy-Out (LBO), Management Buy-In (MBI), Buy-In-Management-Buy-Out (BIMBO), Employee-Buy-Out (EBO), Critical Success Factors, Financing Structure, Equity Capital, Debt Financing, Venture Capital, Mezzanine Financing, Case Study Analysis, VITALIS Ltd., Checklist for Success.