I'm a Managing Director, Get Me Out of Here

Sometimes, when a Chief Executive or Board Director sends a CV to Equity Quest he or she isn't really looking for a new job more they are saying 'I'm a Director, get me out of here."

At Equity Quest we recruit Managing Directors and board level executives for Private Equity.   Private Equity will be looking for executives for their portfolio companies.  Some of the CVs we receive however are from people who are frustrated and tired of their present ownership structure and the lack of investment.

Perhaps sometimes Managing Directors and other directors should consider staying put and buying out their business in a Management Buy Out and take control of their futures'....and perhaps make themselves handsome returns in the short term future.

As a rough rule of thumb, for a business to be bought out using Private Equity and bank funding, there needs to be profits or potential of profits in excess of £2m p.a.  However, businesses in deep distress will also be considered if there is a rescue plan and potential of great returns. Small businesses in distress probably wont qualify.

Financial backers will need to be sure the buy out managers have the skills and experience and can fly on their own without the support of the previous owners.  Should there be a skills gap, you, your advisers or even the Private Equity firm may introduce an external candidate. They will turn to specialist companies like Equity Quest to search the market for people who can work both with management teams and their private equity backers.

MBO teams often comprise of 3 or 4 individuals; a Managing Director, Finance Director, Sales Director and Production/Operations Director.  Assembling this team is often the hardest.  Maybe it is one of the directors the potential MBO leader doesn't see eye to eye with.  Again, there needs to be a consideration of filling gaps for whatever reason they exist.

Of course there are many steps an MBO team should take to a successful buy out. But the first is the biggest; are you a Managing Director and do you want to Get Me Out of There.....or is it worth staying around and becoming the king of your own jungle?