Management buyout/buyin

A management buyout or buyin (MBO/MBI) is typically the transfer of control of a business into the hands of a management team, either existing or recruited to deliver the transaction.

This can happen for several reasons and can be structured using any of the following:

• Deferred payment arrangements
• Debt funding
• Equity funding – either via the team, angel investors or private equity/venture capital

With the appropriate support from the start of the process, a management team will be able to grow the business, improve its operations and then generate and reap the rewards of business ownership.

How Napthens can help

Napthens will work with a business and alongside accountants/corporate finance specialists to implement the MBO/MBI.

Our legal team can anticipate the typical issues requiring resolution and can apply our experience to ensure any size of MBO delivers on the objectives, for both the management team and sellers.

We can advise selling parties on the acquisition terms, including whether any retained minority equity stake or anti-embarrassment mechanism is appropriate. We can also advise management teams on the acquisition as well as funding/investment/ongoing shareholder arrangements.

Our team will help advise how to structure the deal, look at due diligence, review funding options, advise on the risk and security for both parties, finalise the legal agreements and ensure the deal is appropriately completed.