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VIMBO: Vendor Initiated Management Buy Outs

Similar to a Management Buy-Out (MBO), Vendor Initiated Management Buy Outs (VIMBO) can be a profitable, low risk alternative for those needing a business exit strategy.

Why Progeny?

Our wide range of expertise enables us to provide clear advice to the owner or management team engaged in a VIMBO.

We understand how important it is to secure a future for the business you have built. Our qualified legal team can focus on the best strategy for you. We can guide you through what can be an emotional time and help you consider the pros and cons involved. With our broad range of skills in business succession and business exit strategy, we take a personalised approach to ascertain the appropriate journey for you and the profitable succession of your company.

Obtaining tax clearance on the structure is the first key step to a VIMBO, and our collaborative team of legal and tax experts at Progeny are best placed to navigate you through this.

Offices nationwide

With offices up and down the UK, we offer face-to-face services nationwide. Giving you the opportunity to meet your planners in person to discuss your specific needs.

Growth experience

Progeny has experienced successful business growth. With experience gained through our own development, our qualified team can offer first hand commercial advice.

Collaborative team

We have a diverse and collaborative team of professionals including corporate legal, financial and tax experts, providing the full package of services you need for your VIMBO

B-Corp certified

As a B-Corp certified firm, we are proud to join a select group in the UK professional services, committed to high standards of social and environmental impact globally.

How we can help with your VIMBO

We can provide relevant advice to the owner or management team engaged in a VIMBO to ensure top performance is the focus throughout. Our team can assist in managing the complexities involved, allowing a smooth transition and positive outcomes for all. If you would like to speak to the Corporate Legal team about a VIMBO for your business, please do get in touch.

Frequently Asked Questions

What are Vendor Initiated Management Buy Outs?

Vendor Initiated Management Buy Outs (VIMBOs) follow a similar process to Management Buy Outs, with the difference that in this instance the company owners approach the existing management team and enquire whether they would like to buy the company out.

What are the benefits of Vendor Initiated Management Buy Outs?

One of the main benefits for a business owner is that they can minimise their risk whilst still realising the value they have created in the business. The management team use the cash resources of the business to finance the deal, which means that no third-party funding is required. This means that there is less financial risk for the business. The vendor may also maintain an equity stake, including receiving profits and having an oversight of the succession taking place. This is a great opportunity (and a tax-efficient way) for family business succession, when handing down a company to the next generation in the management team.