Strategy change can lock-in low buyout prices

Partner Chris Massey said market volatility meant buyout costs could change from one day to the next. And he said schemes should adopt an investment strategy in order to lock-in the price quoted.

Massey said: "It is important to have a trigger point and to have someone monitoring the markets so that you can switch investment strategies at the right time."

He explained that buyout providers can provide clients with a series of bonds that can track the buyout market, locking them in to a price for six to 12 months.

Massey said Investors can switch their strategy to these bonds when the buyout price is at a level they are happy with, and by doing this they do not have to rush to sign the deal.

Massey said: "Negotiating a buyout contract can be a length process, and if you’re trying to conduct negotiations and watch market conditions, which are changing the price by the hour, it can all come down to luck as to whether you get that contract or not.

"These products cancel out that market volatility making a deal more likely."