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Management Buy-outs and Buy-ins
A management buy-out ("MBO") involves the acquisition of a company by the management team. An acquisition like this is often supported by private equity investment and/or debt financing.
The management (buyer’s) perspective
We regularly advise on MBOs from the management's perspective on the following:
- the scope of warranties which management may have to give as part of the process and the related disclosure exercise;
- the typical terms for their equity investment;
- guiding the management team through the often-tricky exercise of reconciling their participation in the MBO with their existing duties as directors and employees; and
- advising, in conjunction with the lawyers in our employment team, on any new employment arrangements.
The business owner (seller’s) perspective
We also act for sellers who have decided to sell a business to their management team.
A management buy-in ("MBI")is similar to a management buy-out, but in this instance, the managers or a management group from outside the company lead the acquisition.
Whether you are selling your interest in a business to a management team, or acting for the incoming management team on the acquisition, we can guide you through the process.
For further information, please contact Keith Kennedy on 0161 684 6942 or make an enquiry.