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Management Buyouts / Buy-ins

Management Buyouts / Management Buy-ins

A management buyout (MBO) describes a transaction when the existing management team of a business purchases all or part of that business from its current owners.  A management buy-in (MBI) is similar to an MBO, but external managers lead the acquisition.

A buyout can be an exciting and lucrative opportunity for those involved but it can also be stressful and time-consuming, especially when combined with the responsibilities of the day-to-day running of the business.  There are complex legal and financial issues to grapple within a business purchase and having a clear strategy in place at the outset can make it easier to tackle such issues.

It is vital to seek the advice and assistance of a legal professional in order to achieve swift and successful completion of the MBO. The right solicitor can support the parties throughout the process and help alleviate some of the pressures that inevitably occur.

Farleys have a dedicated team of corporate solicitors with practical experience in co-coordinating all types of corporate transactions, including management buyouts and buy-ins.  We will quickly establish your business objectives and provide expert advice and assistance throughout the buyout process.

Commercial contracts farleys solicitors llp

Case Study: MBO of NR Engineering Ltd

Farleys recently represented the owners of N R Automatics (Engineering) Limited in the sale of the company to members of its management team...

NR Engineering Ltd
Read Case Study

The Management Buyout Process

Farleys Solicitors have a hands on approach and provide practical support and advice based on solid experience and commercial understanding.  We can assist with every aspect of the legal process acting either for the seller or the MBO Team, including:

  • Drafting Heads of Agreement
  • Planning and co-ordinating the deal
  • Liaising with the other party’s solicitors and existing funders of the company
  • Formation of Newco
  • Liaising with MBO team’s funders
  • Preparation, negotiation and/or approval of all necessary documentation required, including:
  • The Sale and Purchase Agreement
  • The Disclosure Letter
  • All facility and security documentation in connection with the funding
  • The Articles of Association for Newco
  • New Shareholders’ Agreement and/or Cross-Option Agreement for the MBO team in relation to Newco
  • Charges or Security documentation over assets of Newco
  • New Service Agreements for the MBO Team or sellers who are staying on
  • All ancillary documentation including Board Minutes and Shareholder Resolutions
  • Ensuring Companies Act requirements are met

Contact a Solicitor for Legal Advice on a Management Buyout or Management Buy-in

For a free of charge initial discussion with one of our corporate lawyers please do not hesitate to call us on 0333 331 5984 or alternatively, you can email us.

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