Management buyouts often involve complex structure. Using our experience, we work with the management team to streamline the process and effect completion with minimum cost. An MBO is different to the majority of corporate transactions, and thus experience is key.
Recent experience in completing management buyouts successfully include:
Acting for the management team of an invoice financier on its MBO in conjunction with a private equity fund. We created numerous classes of shares in NewCo to ensure that the management team held shares with different rights to those shares held by the fund.
Advising the management team of a restaurant group on its MBO, with the creation of numerous group companies for the purposes of seeking debt finance from banks.
Preparing a post-completion investment agreement for the management team following the completion of their MBO of an enforcement agents. The agreement permitted the management team to subscribe for further shares at a “sweat equity” value providing the target met certain financial projections.
Creating a pool of EMI shares in NewCo prior to a management team’s MBO of a recruitment company. The pool was created to incentivise those employees placing candidates into roles with employers in the natural resources sector.