Calculators
The management buyout calculator suite: four tools, built the way buyout funders underwrite.
Every number an MBO turns on, the price, the debt the cash flow can carry, the vendor loan and the equity gap, is modelled here for free. Run your figures first, then talk to an adviser who can tell you which funders in the market will support them.
Pick the calculation your buyout turns on
Start with the funding structure calculator if you know the price and want to see how it could be funded, or the debt capacity calculator if you want to know how much the business can borrow before the price is agreed.
Management buyout funding structure calculator
Sources and uses for an MBO: enterprise value from EBITDA, senior debt, vendor loan, management cash and the equity gap.
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MBO debt capacity and DSCR calculator
How much senior debt the business can service from free cash flow at a target debt service cover ratio.
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Vendor loan note calculator
Repayment schedule and total cost of deferred consideration, with an optional interest-only or deferred period.
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EBITDA valuation calculator
Enterprise value and equity value from adjusted EBITDA and a multiple range, less net debt.
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Why these tools
What a management buyout calculator has to model
A generic business loan calculator misses the three things that define a buyout. The price is set on EBITDA, not on assets, so the first question is what the adjusted EBITDA really is once owner pay, one-off costs and a replacement salary are normalised. The funding comes in layers that rank differently and cost differently, senior debt, vendor loan note, management cash and investor equity, so a single "loan amount" tells you nothing. And the test that decides whether the whole thing is fundable is debt service cover: free cash flow after tax and capex divided by everything the company has to pay its funders each year. Each calculator here builds those buyout-specific mechanics in, so the outputs match the conversation you will actually have with a credit committee.
The product detail behind the numbers lives on the management buyout finance hub, and the structure is unpacked in our guide to how a management buyout is structured.
From numbers to funder
What happens after the calculation?
The calculators give you the market-standard answer; the funder gives you theirs. Leverage ceilings, cover tests, amortisation profiles and pricing vary across banks, debt funds and asset based lenders across the UK market, and several of the most useful funders for a buyout never publish criteria. When your numbers look workable, a 15-minute fee-free call is enough for us to build the sources and uses properly, sanity-check the equity gap and tell you which funders would take the case, and on what terms.
Management buyout calculator questions
How do you calculate a management buyout?+
Start with adjusted EBITDA and a sector multiple to get enterprise value, add transaction fees and day-one working capital to get total uses, then fill the uses with sources: senior debt at a multiple of EBITDA, a vendor loan note, management cash and any investor equity. The check that decides whether the structure works is debt service cover, the free cash flow divided by the annual capital and interest on all the debt. Our funding structure calculator runs exactly that arithmetic.
How much can a management team borrow for an MBO?+
Banks typically lend 2.0x to 3.0x EBITDA as senior debt; specialist cash flow lenders stretch further at a higher price, and asset based lenders size against debtors, stock, plant and property instead. In every case the loan has to be serviced from free cash flow at a cover ratio of roughly 1.25x to 1.5x, which is what the debt capacity calculator tests.
How much do managers have to put in?+
Enough to show commitment, not enough to fund the deal. Funders usually want the team to invest a sum that is material to them personally, often equivalent to a year of salary or more, and on a typical lower mid-market MBO management cash ends up at 5 to 15 percent of the price. The balance comes from debt, a vendor loan note and, on larger deals, private equity.
How is a vendor loan note repaid?+
Usually after an interest-only period while the senior debt amortises, then in instalments over two to five years, with payments blocked if the senior lender's covenants are breached. The vendor loan note calculator shows the schedule and the total cost under cash-pay or rolled-up interest.
How accurate are these calculators?+
They use market-standard arithmetic and indicative bands as of September 2026: 25 percent corporation tax, a 5 percent maintenance capex allowance, annuity repayments and the leverage and pricing ranges we see across the panel. They are illustrative rather than a quote, because every funder sets its own cover test, leverage ceiling and pricing. When you want funder-specific numbers, the initial consultation is fee-free.
Enquiry
Turn the numbers into a funding structure
Same-business-day callback. Whole-of-market access to banks, debt funds and asset based lenders across the UK market. Initial consultation fee-free.
- Whole-of-market: banks, cash flow lenders, asset based lenders, mezzanine and private equity.
- A funding structure and indicative terms before you commit to anything.
- Initial consultation always fee-free. Confidential.