1
Who is really “management”?
A buyout needs two or three people who already make decisions without you. If every approval still passes your desk, build the team first. The buyout follows.
Guide · 5 min read
Management buyout
Selling to the people who already run the business keeps continuity for customers and staff, if the team and the financing are ready.
2
How it is financed
Most Indian MBOs combine seller financing (you are paid over time from profits), bank or NBFC debt, and a modest equity contribution from managers. Expect to remain financially exposed for three to five years.
3
Pricing it fairly
Managers know the business well and may under- or over-value it. An independent indicative valuation keeps the conversation factual and protects the relationship.
4
Staying involved without staying in charge
A defined advisory role, a board seat or a consulting agreement protects your interests during the earn-out while giving the team real authority.
What the assessment shows you
Management depth and Business Independence scores show whether a buyout is realistic today or a 12–24 month project.
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