Funding for management buy-outs

By Paul Taberner, investment director, Mercia Fund Managers

With the baby boom generation reaching retirement, many business owners will look to sell in the coming years.

For small firms, the most likely buyers may be managers already working in the business.

Selling to a management team has advantages for all concerned - people within the business are most likely to appreciate its true value, it gives them the chance to own their own firm, and it is more likely to secure the jobs of other staff.