How To Do A Management Buyout (MBO)

 

How To Do A Management Buyout (MBO)

An MBO 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 all or part of the business or the current owner selling the business, we can advise on the procedures involved.

A buyout can be an exciting and rewarding opportunity for those involved but it can also be stressful and time-consuming, especially when running the day-to-day business. We can support you by providing a clear strategy from the outset, making the process as smooth as possible.

Our experienced corporate solicitors can support you throughout the process.

Free Initial Telephone Discussion

Contact us today to find out how we can assist. Simply call us on 0161 929 0121 or complete our online enquiry form and a member of the team will give you a call back as soon as possible.

The Management Buyout Process

We can assist with the negotiations and documentation, including:

  • All facility and security documentation in connection with the funding
  • Board Minutes and Shareholder Resolutions
  • Drafting the initial Heads of Agreement
  • Negotiating with the other party’s solicitors and existing funders
  • Planning and managing the deal
  • Service Agreements
  • The Sale and Purchase Agreement
  • The Disclosure Letter

Structuring an MBO

Our solicitors will deal with the structure of the management buyout and we always aim to protect your position. MBO’s are flexible and there are a variety of ways of structuring the deal.

You will also need to make sure you do thorough due diligence and we can assist you with this process.

Management Buyout Financing

Equity finance is usually in the form of shares which are issued in the new company. There are disadvantages of equity finance and you should seek legal advice about the options based on your circumstances.

Restrictive Covenants

The management buyout team will usually want to restrict the future business ventures of the seller to compete, however, the seller may not agree to this. Our negotiating skills will help you agree on restrictions whilst balancing the needs of all parties.

How We Can Help

We understand that any corporate transaction can be complex. Using our experience and wealth of knowledge, we are able to offer expert advice on all management buyout issues based on your individual requirements.

We are committed to providing you with a first-class service and helping guide you through the process.

To speak to our solicitors today, simply call us on 0161 929 0121, or allow a member of the team to get back to you by filling in our online contact form. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.

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