"How are you guys doing and how is the MBI market doing? We are asked that question all the time. Often with the expectation that we are experiencing bad times right now.
However, nothing could be further from the truth. The MBI market is a market that has movement in all times. In fact, there is always a need for strong MBI candidates and so there is always a market for MBI transactions.
Boom time
In times of boom, times that are not so far behind us, the MBI'er offers a solid and now fully established alternative to strategic sales. Increasingly, too, together with private equity firms, whose capital is looking for strong MBI'ers. Entrepreneurs with the right appropriate experience in the industry of the business in question. After all, in these times prices are climbing and for that reason alone it will be necessary to ensure solid management and solid continuity in the management of the business.
Downturn
During downturns, there are fewer alternatives available to a DGA looking for succession. Nevertheless, there are MBI'ers with sufficient self-confidence, experience and knowledge of the market, who see an opportunity precisely then to step into a suitable business as an entrepreneur. In businesses of larger size, an investment company will also want to continue to play a role here. After all, investment pressure from these parties remains an important factor even in downturns.
Uncertain times
Right now, times are uncertain for far from all - but quite a few - industries. We see that many CEOs feel the need to bring on board a committed entrepreneur with the right experience and competencies as a co-shareholder. Precisely to lift the business together (again) to a higher level.
So in these cases, it is not about complete transfer of the business, but rather about strengthening the management of the business and securing succession. Often, agreements are then already made about a joint exit with or purchase of the remainder of the shares by the MBI candidate in question.
But we are certainly also currently seeing CEOs who want to go for a 100% sale, provided the right successor presents itself to them. In all times, however, we cannot repeat often enough: shoemaker, stick to your last. After all, an MBI is a reinforcement/good successor precisely because he has relevant experience in the industry or can very well draw parallels with his previous experience. In difficult times, this is absolutely essential.
We find that in this corona era, people are very consciously reflecting on their future. Therefore, it is good to see that the supply of strong, entrepreneurial MBI candidates is increasing. MBI'ers who make a well-considered decision to actively seek out businesses through us where they can leverage their experience. In any case, there are plenty of opportunities for the right candidates
So in good times and in bad times: always MBI times!
