Management Buy-Out (MBO) Loans

Finance management-led business purchases.

1

Complete the form

Answer a few questions for us to understand your business' needs

2

We compare 100+ lenders

We will advise which options could be suitable for your business

3

You choose the offer that best suits you

We'll present any offers available for your business. You choose the one that best suits your business.

Apply Now

Please note the minimum requirement is £5,000.

Apply Now
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

What is a Management Buy-Out (MBO) Loan?

An MBO Loan is used by an existing management team to acquire the business they already help run. This allows for smoother ownership transition and business continuity.

Types of Management Buy-Out (MBO) Loans

MBO financing can involve senior debt, mezzanine finance, vendor financing, or private equity. Traditional term loans are often combined with other instruments depending on deal structure.

Loan Calculator

Monthly Payment
£0.00
Total Repayment
£0.00

Identify the Funding Need

Working capital, expansion, stock purchase or covering cash flow gaps.

Compare Lenders

Compare Business Funding will explore the most suitable lenders based on your business profile, credit score, and loan amount.

Apply and Submit Documents

Complete the application form and our team will speak to you to fully understand your requirement and request the documentation required.

Agree the Terms

Once approved, you’ll receive an offer outlining the loan amount, repayment schedule, interest rate, and any fees involved.

Receive Funds and Repay

The funds are deposited into your business account. You then make the agreed repayments over the agreed term.

Compare Business Loans Deals Today

At Compare Business Loans, we make it easy to compare a full range of business loan options from top UK lenders.

Whether you're looking for unsecured business loans, secured loans, start-up loans, working capital finance, short-term business funding, or any other type of loan, our specialised partners, expert business finance brokers, help you find the best deal for your business, saving you time, money, and hassle.

Compare now

Quick online quotes

Transparent fees and terms

Wide range of finance providers

No-obligation comparisons

Benefits of Management Buy-Out (MBO) Loans

It empowers experienced managers to take ownership of the business with minimal disruption. Because the buyers are internal, there's less risk of operational instability, making it appealing to lenders.

Ideal when business owners are retiring or stepping away, and want a trusted internal team to continue operations. Used across sectors from manufacturing and engineering to legal or accountancy firms.

Things You Need to Know

A strong case must be made for the management team’s capability, plus funding may require a mix of loan types. External advisors are often involved to validate the deal structure.

FAQs

Can I get 100% finance for an MBO?

Usually not, some buyer equity is typically required.

What’s the role of vendor financing in MBOs?

The seller may defer part of the payment, easing upfront capital needs.

Will I need personal guarantees?

Often yes, particularly for unsecured elements.

How long does MBO funding take?

On average 6–12 weeks due to due diligence and structuring.

Is private equity common in MBOs?

Yes, especially for larger deals where bank lending alone isn’t sufficient.

Disclaimer: Compare Business Loans helps UK firms find the right finance credit broker for access to business finance. Compare finds credit brokers, not lenders. Any quotes provided are for information purposes only and subject to status and separate lender terms and conditions. Applicants must be aged 18 and over.  Guarantees and Indemnities may be required.  

This website is operated by Spark Finance. Spark Finance Ltd (Registered office - 18 John Stow House, London, England, EC3A 7JB, Registered Number 10128297) helps UK firms access business finance. Spark is a credit broker, not a lender. Any quotes provided are for information purposes only and subject to status and separate lender terms and conditions. Applicants must be aged 18 and over.  Guarantees and Indemnities may be required.  Spark Finance may receive commission from lenders  which may vary depending on the lender, product, or other permissible factors. The nature of any commission model will be confirmed to you before you proceed.

Spark Finance Ltd is authorised and regulated by the Financial Conduct Authority in the UK (FRN 958123).