Management buyouts

Picture the scene; you are the owner of a mature business. You have worked hard for many years to build up a loyal client base and cement your company’s place in the market. Now you now want to realise the value you have created, so you can kick back and relax, or pursue new opportunities.

For business owners and their aspiring management teams, a management buyout (MBO) may provide the most successful exit and succession strategy for all concerned.

For owners

Finding a third party buyer for your business can be a time consuming process.  It will almost certainly be necessary to part with sensitive business information to entice a trade competitor (with no guarantee the deal will complete). Despite a lengthy due diligence process, you will also be required to give comprehensive warranties relating to all areas of the business, making you potentially liable for a warranty claim for a number of years after your exit. 

A better alternative may be to look to your current management team. A well run business is likely to have good quality, ambitious staff that you have hand-picked.  They will know and understand the company, which should limit the post-completion warranties you are required to give and result in a smooth transition for customers and employees. When negotiating the terms of the transaction, you will also be dealing with individuals you already know and trust.

For managers

You are part of an experienced management team that is capable and proficient at running the company for which you work.

An MBO offers you an once-in-a-lifetime opportunity to own your own business and potentially enjoy the financial rewards that reflect the profits your hard work is generating.

If your company is facing succession issues, an MBO will give you the opportunity to take control, rather than face the potential uncertainty of working for new owners.

How can Taylor&Emmet help with your MBO?

Whether we are acting for business owners or the acquiring management team, Taylor&Emmet’s corporate solicitors have considerable experience of the MBO process. We will work closely with your accountants and financiers to close the deal quickly and painlessly.

As our client, you can be certain that we will have seen your issues before and we will have practical solutions to solve them. Taylor&Emmet also has dedicated teams of employment and commercial property lawyers on hand to offer expert advice and transactional support. 

To discuss an MBO or any other potential transaction, please contact Peter Crawford.