Our solicitors are vastly experienced in assisting businesses of all sizes to facilitate a management buy-in. At Blackstone Solicitors, we are able to advise many different types of client, no matter the complexity of the deal.
For more information about how our management buy-in team of solicitors can help your business today, contact us on 0345 901 0445 or complete our online enquiry form and a member of the team will call you back at a convenient time.
If you are considering selling your business or are looking to purchase a business as part of a management buy-in, there are a number of considerations to bear in mind.
A management buy-in can occur when an external manager or a management team raises the necessary finance, completes the purchase of the company, and becomes the company’s new management. A management buy-in team often competes with other purchasers in the search for a suitable business.
We are known for our efficiency and ability to get things done; qualities much needed when pushing through a successful management buy-in. We will provide professional, pragmatic advice based on our years of experience in this specialist area.
Our team will do all it can to ensure your business is properly represented in any negotiations and will put your interests first at all times. Management buy-ins can be highly technical transactions and can involve many different aspects such as employment, intellectual property, property, tax, competition and regulation; we can advise on all these areas and make sure you are in the best possible position for a successful outcome to your negotiations.
Why Legal Help is Important
Management buy-ins can occur in companies and businesses of any size or any industry and are a mechanism often employed to buy the existing owners out of the business. However, they can also be used to break a certain department or division of the business away from the main operations, or in some instances to save the company from administration.
Management buy-ins can be highly complex. They are incredibly important events that will have an impact on your business, both in the short and long term – it is therefore imperative that you have the best legal experts at your side, not only to ensure everything progresses as it should but also to make sure your business benefits from the best possible outcome.
A management buy-in team will usually have sector experience but not necessarily any experience of the specific business they are buying into. Given this lack of prior knowledge, a management buy-in team will need to conduct more thorough due diligence and expect robust warranty and indemnity protection. It should also be considered that a management buy-in team may be viewed with a certain degree of hostility and perhaps scepticism by the existing employees and will often not have access to the same level of financial resource as a trade purchaser.
A management buy-in can represent an important opportunity to exit or grow your business; with the right legal assistance, you can ensure you make the most of these opportunities as and when they arise.
What Is The Process Of A Management Buy-In?
The external management team will look to collate all relevant information about the company that it wants to purchase. This includes carrying out a thorough 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 business. Once all due diligence has been completed, the external management will begin negotiating an appropriate price with the vendors.
Advantages Of A Management Buy-In
New management often brings new contacts and business opportunities for the company. The current employees of the company may also be motivated by a change of management. This is especially the case if the business hasn’t been performing well.
If the current owners of the company are struggling to manage effectively, then a management buy-in can be advantageous for both buyers and the sellers. The new management may have better knowledge and experience which can, in turn, revitalise the company.
Disadvantages Of A Management Buy-In
The new management team doesn’t always achieve the required growth for the business. Existing employees may struggle with the new management style and may feel demotivated.
Management may lack the financial muscle to be able to buy a business outright. This means a seller might not achieve the same price as compared to selling to a third party. If the management team do decide to buy, then they may require additional funding from a bank or private equity. This has implications in terms of servicing the debt, with repayments diminishing any profits that would have been available for dividend payments. Many investors will also want to exercise some level of control over the company and this may mean that management has to give up a degree of control.
We are able to assist with any aspect of a management buy-in and will guide you through the technicalities of the process in a clear and concise way. We have a team of experienced solicitors well versed in management buy-ins who are ready to assist you and assess as to whether this is the best mechanism to sell your business.
Get in Touch
Find out more about our services and how our management buy-in solicitors can assist you and your business by getting in touch. We have offices in Cheshire and London and are able to serve clients across the North West, including Chester and Manchester, as well as throughout the UK and also overseas.