Management Buy Out Solicitors in Manchester

A Management Buy Out (MBO) is the purchase of a company from the owner by its existing management team. This is often considered a good way of exiting a business, as the management team will know and understand the business they are purchasing. Generally speaking, it is therefore less likely that the business sale will collapse during the due diligence process.

An MBO usually involves forming a new company to acquire the shares of the existing company. The existing shareholders sell their shares to the new company and the transaction is complete. The funding for an MBO can come from a number of sources and our experienced commercial solicitors can assist in structuring the deal from the outset.

Whether acting for vendor or purchaser, we will also negotiate on warranties and indemnities. Sellers will wish to limit warranties on the basis that the purchasers have been running the business; however the purchaser’s funders will often look for greater protection.

As with any business transfer, our work would include:

• Preparing relevant documentation including the Share Purchase Agreement
• Negotiating warranties and terms
• Undertaking due diligence
• Drafting restrictive covenants

Call Business Lawyers Direct today on 0845 371 0701 or contact us via our online enquiry form and one of our senior solicitors will be pleased to discuss your requirements.