This video was made at Römheld & Moelle in Mainz, a BPE portfolio company acquired in an MBO in 2014.
Become an entrepreneur
Management Buy-out
BPE is your partner if…
1
…you are a manager of a company that belongs to a group and you wish to acquire this company alone or with colleagues from the management team (corporate divestiture).
2
… you are the head of a business unit which is becoming increasingly independent of the remaining activities of the parent company and could better exploit opportunities as a standalone company. Moreover, you alone or as a part of a management team would be willing to buy-out the business unit in order to establish a new independent company.
3
… you are a manager of a “Mittelstand”, owner-managed company in which succession is becoming more relevant or shareholders want to sell their stake and you are interested in acquiring the company yourself (succession planning).
4
… you are a manager or management team in one of the various situations outlined above and would like to be accompanied by an experienced, also entrepreneurially ambitious operative partner. We may be able to provide a manager from our BPE MBI-Initiative. In addition to the necessary complementary qualifications, human and cultural complementarity (chemistry) plays a major role here. It simply has to fit!
Sample calculation
| Company purchase price incl. additional costs | € 10,0 m |
|---|---|
| Debt | € 5.0 m |
| Equity | € 5.0 m |
| consisting of share capital | € 0.1 m |
| Share premium/capital reserve | € 2.15 m |
| Subordinated loan (interest 7 % p.a.) | € 2.75 m |
| Participation concept Management participation | 20 % |
|---|---|
| Percentage share of share capital 20 % | € 0.02 m |
| Percentage share of premium/capital reserve 20 % | € 0.43 m |
| Percentage share of subordinated shareholder loan | € 0.00 |
| Total acquisition cost for 20 % | € 0.45 m |
| Management acquisition costs per 1 % | € 22,500.00 |
| BPE participation | 80 % |
|---|---|
| Percentage share of share capital 80 % | € 0.08 m |
| Percentage share of premium/capital reserve 80 % | € 1.72 m |
| Percentage share of subordinated shareholder loan | € 2.75 m |
| Total acquisition costs for 80 % | € 4.55 m |
| BPE acquisition costs per 1% | € 56,875.00 |
| Acquisition cost of BPE | |
|---|---|
| Ratio of acquisition costs per 1% | € 22,500.00 / € 56,875.00 |
| Management/BPE cost ratio | 1/2,5 |
Your opportunities to become an entrepreneur