Lloyds Corporate Brokers has completed the Management Buy-out (MBO) of a highly successful and much sought after Aluminium Trailer manufacturing company.
GBB's multi trailer combinations are renowned in the industry for their robust construction, attention to detail, quality of workmanship, and the lightest trailer tare weights in the market, allowing the customer to get maximum pay load.
Their products are known through most parts of Australia with very high growth rates in QLD, NSW, VIC, TAS, and SA.
§ Established almost 45 years ago, GBB has a well-established industry reputation for excellence in product design and innovation.
§ Renowned in the industry for their robust construction, attention to detail, quality of workmanship and the lightest trailer tare weights in the market. This allows the customer to get maximum pay load.
§ GBB are the market leaders in that all their aluminium tipping trailers have high tensile aluminium chassis.
§ GBB can build with all types of steel, aluminium & stainless steel.
§ Can design bodies and trailers to meet specific needs
Lloyds initiated the sales process with a Business appraisal and Preparation of an Information Memorandum and Marketing teaser. This highly sought-after business received over 30 qualified enquiries and several offers.
Lloyds facilitated introductory meetings between Management and Directors through all aspects of the Sale process, including Deal structuring and negotiation of Sales terms.
The Sale was conducted by Lloyds' Victorian Director Edward Alder and our Corporate Partners Alexander Spencer, who worked closely with Management to achieve a successful result.
What is a management buyout?
In its simplest form, a management buyout management buyout (MBO) is a transaction in which the management team pools resources to acquire all or part of the business they manage.
Most of the time, the management team takes full control and ownership, using their expertise to then grow the business. Financing usually comes from a mix of personal resources, lenders and outside investors, and the seller's resources.
It's important to differentiate between the transfer of operational responsibilities and the transfer of ownership. The first is usually gradual, over several years, and transparent, first to employees and then to external stakeholders such as customers, suppliers and financial partners, who will then not be surprised when the actual transaction is signed and finalized.
The risk is reduced because the continuity of business operations are better ensured when the people who manage the company are the ones who decide to buy it. Because the buyers are an experienced management team that is already familiar with the business and its needs, the stakeholders (existing customers, suppliers, business partners and especially employees) often feel reassured.
Two frequent patterns in management buyouts. First, a very strong leader, such as a general manager, buys the business, which is generally small.
Sometimes the person who buys the business partners up with another key person, such as the person in charge of sales or production, but the leader remains very strong and usually the transfer goes fairly smoothly.
The second frequent model is the multifunctional group. "It's when five or six people in the different key functions join forces to buy out the company, which is often bigger."
A group is definitely more complex to manage for the transfer, but if the right people are chosen and the roles are well defined, the results can be excellent.
If you own a business in the Manufacturing sector, talk with Lloyds Brokers on 1300 366 943 for advice on how to buy or sell your business. We have teams of brokers in Melbourne, Brisbane Brokers, Adelaide Brokers and Sydney Brokers.
