Management teams
Buying out existing shareholders or acquiring shares from passive holders.
Management buy-outFund the buyout.
Fund the buyout.
Keep the business.
Strong on day one.
Independent debt advisory for UK SME management buyouts, succession sales and family business transitions — across senior debt, vendor structures and blended funding.
Speak to an MBO advisorThe problem
MBO funding is rarely just a business loan
A buyout typically blends several elements: senior debt, asset finance, invoice finance, management cash, vendor loan notes, deferred consideration, earn-outs and sometimes private capital.
The right structure depends on profitability, cash generation, balance sheet, asset base, sector and how much risk the team and the seller can each carry. Stable helps you understand what's realistic before you go too far down one route.
Who we help
Teams, sellers and the advisers around them
Founders & families
Planning succession or transitioning ownership to the next generation.
FDs and MDs
Exploring an MBO of the business they already run.
Sellers
Wanting to know whether the management team can actually fund a deal.
Corporate finance advisers
Needing dedicated debt support alongside the wider transaction.
Accountants & lawyers
Looking for funding structure input before approaching lenders.
Debt capacity
Can this deal be funded?
The first question to answer, before lender conversations begin. We assess:
Cash flow & EBITDA
Debt capacity and cash available for repayments after completion.
Balance sheet & assets
Existing borrowing, security position and asset backing.
Working capital
What the business needs to keep trading after the cash leaves for the deal.
Sector & lender appetite
Which lenders will engage on a deal in your sector and at your size.
Management strength
Team experience, personal investment and key-person risk.
Vendor expectations
Whether deferred consideration or vendor loan notes are needed to bridge the gap.
Common challenges
Where MBOs typically hit friction
Where MBOs typically hit friction
1
Valuation higher than the business can fund
Vendor deferral, staged payments, private capital or a revised valuation usually need to step in.
2
Management team has limited personal cash
Rarely kills a deal, but shapes lender appetite, structure and the need for vendor participation.
3
Bank wants more security than expected
Debentures, asset security, guarantees, property charges. We compare what different lenders actually require.
4
Seller wants cash upfront
Lenders rarely fund full consideration on day one. We model blended structures — vendor loan notes, deferred consideration, mixed funding.
Funding options
The building blocks of an MBO structure
Senior debt
Usually the core. Repaid from trading cash flow. Suits profitable businesses with predictable performance.
Invoice finance
Releases working capital alongside the deal. Suits B2B businesses with strong debtor books.
Asset finance
Refinances or funds equipment. Suits asset-heavy operators — manufacturing, logistics, engineering.
Vendor loan notes
Bridges the gap between valuation and fundable amount. Suits succession deals where the seller believes in the team.
Deferred consideration
Part of the price paid after completion — linked to time, performance or cash flow.
Private capital
External equity alongside debt. Suits larger deals, growth-led buyouts or thin management cash.
How Stable supports an MBO
From deal review to drawn-down funds
1. Deal review & debt capacity
Business performance, valuation, shareholder position, funding requirement, debt the business can realistically support.
2. Funding structure
A blended structure — senior debt, invoice finance, asset finance, vendor deferral — in the right proportions.
3. Lender matching & funding pack
Lenders whose appetite fits, and a funding pack positioning the deal clearly for credit.
4. Offer comparison & completion
Rate, fees, covenants, security, deliverability. Then alongside accountants and lawyers to close.
Why Stable
Independent debt advice where the banks have stepped back
Many SME management teams start with their bank. Sometimes that works. Often it only shows one slice of the market. Stable gives you the wider view — banks, alternative lenders, specialist funders — plus practical advice on structure, affordability and lender appetite.
In an MBO, the cheapest-looking funding is rarely the best funding. The structure has to work for the business after completion, not just on paper.
Example scenarios
How MBO funding plays out
Founder succession
Founder retiring, selling to the management team. We assess how much can be funded upfront, how much deferred, and which lenders will back the deal.
Family business transition
Ownership passing to the next generation. We structure the deal to balance seller value, affordability and long-term business stability.
Buyout after shareholder disagreement
Management team acquiring shares from a passive or exiting shareholder. We evaluate funding options and build a lender-ready case.
Growth-led buyout
Team buying the business and raising growth capital alongside. We assess whether acquisition finance and growth funding can sit in one structure.
Get started
Ready to test what your MBO could look like?
Stable helps management teams, sellers and advisers understand what's fundable, what isn't, and how to structure a deal that completes — and keeps the business strong afterwards.
FAQs
Frequently asked questions
Can a management team really fund a buyout?+
Often, yes — through a blend of senior debt, asset and invoice finance, vendor loan notes and sometimes private capital. We assess what's realistically fundable before you approach lenders.
What goes into a typical MBO structure?+
Usually senior debt at the core, plus asset finance, invoice finance, management cash, vendor loan notes, deferred consideration and occasionally external equity.
Do I need a lot of personal cash?+
Limited personal cash rarely kills a deal, but it shapes lender appetite, the structure, and how much vendor participation is needed.
What are vendor loan notes?+
Part of the price the seller agrees to receive after completion, bridging the gap between the valuation and the amount lenders will fund on day one.
How much of the price can be funded upfront?+
Lenders rarely fund the full consideration on day one. We model blended structures — deferred consideration, vendor loan notes and mixed funding — to bridge the gap.
How long does it take to arrange?+
It depends on deal complexity, the funding pack and lender appetite. We position the deal clearly for credit to keep things moving.
Will you work with my accountant and lawyer?+
Yes. We provide dedicated debt advice alongside your existing advisers, through to completion.
Why not just go to my bank?+
Your bank shows one slice of the market. We give the wider view — banks, alternative lenders and specialist funders — plus advice on structure and affordability.