Management Buy In Process
We deliver clear solutions for management buy-ins (MBIs). We can also act for vendors and financiers involved in MBI transactions and offer comprehensive advice.
All management buy-ins are unique, depending on the specific requirements of the parties. We can provide advice on the legal aspects of the process and draft the legal documentation for you.
It is vital to seek legal advice and assistance in order to achieve a swift and successful completion of the MBI. Our experienced corporate solicitors can support you throughout the process.
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What is a management buy-in?
A management buy-in (MBI) is similar to a management buy-out (MBO) but managers or a management group from outside the company will lead the acquisition. Given the lack of prior knowledge an MBI team will have about the business, the risks of an MBI are different. Due to this, an MBI team will generally need to conduct more thorough due diligence and expect robust warranty and indemnity protection.
An external management team will first need to gather all the information about the company that it wants to purchase. This includes doing a market analysis of the company, its buyers, sellers, competitors, suppliers and products.
The purchaser will also want to know about any competing buyers who are interested in purchasing the target company. Once rigorous due diligence is completed, the external management team will begin negotiating an appropriate price with the sellers.
Funding an MBI
Most MBIs are financed through a combination of debt and equity, although other hybrid sources may also be used. To find out all the options that are available, please contact our expert corporate lawyers who are on hand to assist.
There will also be several other parties involved in the process, including the management team, the finance providers, the sellers and also all of their lawyers.
The main documentation that will be needed includes:
- Board meeting minutes
- Confidentiality agreement
- Due diligence questionnaire
- Heads of terms – for the acquisition and for equity
- Stock transfer form
- The sale and purchase agreement
How We Can Help
We understand that corporate transactions can be complex. Using our experience and wealth of knowledge, we are able to offer expert advice on all MBI 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 corporate 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.