Successful Dual Management Buyout of Butlin Property Services Ltd

Butlin Property Services Ltd, a well-established property management firm based in Leicester, was successfully sold through a dual Management Buy-Out (MBO) process. The sale was led and facilitated jointly by Partners Tim Peters and Tim Bayley, following a direct approach from the business owner, Peter Butlin, who sought a structured and efficient exit strategy.

The Business

Butlin Property Services Ltd operated primarily across the East Midlands, specialising in two core areas:

• Block & Estate Management
• Residential Lettings Services

Additional services offered by the company included landlord insurance, property maintenance, and other ancillary property-related solutions. With a solid reputation, a loyal client base, and experienced operational heads within each division, the company was well-positioned for a strategic handover.

The Challenge

The client expressed a strong preference for a succession plan that would protect the legacy and integrity of the business, while providing continuity for staff and clients alike. While an open market sale was a viable path and explored to generate a competitive bidding position, the preferred exit route chosen by the client involved two separate MBOs – one for each of the company’s core divisions.

The primary challenges were:

• Attracting credible interest while keeping the MBO route viable
• Structuring and negotiating two parallel MBO transactions
• Assisting the incoming management team in securing appropriate funding
• Maintaining business continuity throughout the sale process

The Process

Business Partnership conducted an extensive marketing campaign to generate interest in the business while simultaneously supporting the two internal MBO candidates. The campaign attracted numerous enquiries and multiple offers from external parties, which validated the company’s market value and created a competitive backdrop for the MBO discussions.

Throughout the process, Tim Peters and Tim Bayley worked closely with all stakeholders to:

• Qualify and assess offers from the open market
• Negotiate terms and structure of the MBO proposals
• Assist the acquiring managers with funding arrangements
• Coordinate legal, financial, and due diligence activities

The Outcome

The two divisional heads—Nick and Rebecca—emerged as the successful acquirers, each taking ownership of one of the firm’s key divisions. Their detailed operational knowledge and longstanding involvement in the business made them ideal successors, ensuring a seamless transition and continuity for clients and staff alike.

The dual MBO structure enabled the seller, Peter Butlin, to meet his retirement goals while maintaining the integrity and reputation of the business he had built over the years.

Conclusion

This case highlights the effectiveness of MBOs as a strategic exit route for business owners looking to preserve legacy while unlocking value. With tailored advice, careful planning, and the right buyers already embedded in the organisation, Business Partnership was able to achieve a win-win outcome for all parties involved.