Management Buyouts/Buy-ins

A management buyout is similar to any other business acquisition with the key difference being that the purchasers of the company are the existing managers.  Whether you are the existing management team buying your company or the current owner selling the business we can advise on the procedures involved. 

 

MBOs are attractive

 

Selling a business can be a lengthy and complex process, from finding a buyer, through the due diligence process and onto the transitional period. Selling to existing employees can be much quicker. They are already involved and know the business. As well as a faster and easier sale, the seller also gets peace of mind that their business is being passed onto a group they know and trust.

For the buyers, it is the quickest and least risky way to step up into an ownership role. This allows individuals to fulfill their ambitions of taking ownership and being in full control, of taking home a larger slice of the profits. The alternative, to start a business from scratch, contains more risk and longer to turn in a profit making business.

We can assist with all aspects of the legal process acting either for the seller or the Management Buy out Team, including:

  • Drafting the initial Heads of Agreement
  • Project managing the deal
  • Negotiating with the other party’s solicitors and existing funders of the company
  • Liaising with Management Team’s funders
  • Drafting, negotiation and/or agreeing the necessary documentation, including:
  • The Sale and Purchase Agreement
  • The Disclosure Letter
  • All facility and security documentation in connection with the funding
  • Charges or Security documentation over assets of Newco
  • Service Agreements for the MBO Team or sellers who are staying on
  • All additional documentation including Board Minutes and Shareholder Resolutions