MBOs/MBIs

Getting involved in an MBO or MBI is likely to be one of the most challenging times of a manager's professional life. Running a business and participating in an MBO or MBI is a significant commitment of time and energy. You will need lawyers who understand that and can support you by cutting through matters to the really important issues and explaining the documentation and processes in a clear and concise manner.

How can we help?

We will explain to members of your management buy-out/buy-in team in a clear and concise manner the process of the transaction and the documentation involved. At the outset we will address your conflicts of interest and advise you on how to manage them.

We will help you to negotiate this documentation and we will work with you to identify the key risk factors in the transaction. We will explain to you the level of warranties and indemnities required of you in the transaction and help you to balance your risk-reward exposure to them through disclosure and securing back-to-back comfort from the sellers.

We will help you to assess your own position in the context of the transaction. Your key areas of risk are likely to be around your tax position as regards your equity participation in the transaction, and whether or not you are being asked for any form of personal guarantee or security in excess of your initial contribution to the transaction.

We will explain to you the differences between the forms of finance available to you and how each financier expects to make his return from the project.

In doing all of this, we will be sensitive to the demands placed on you because you are running your business.

Our management buy-out/buy-in services

• Advising on transaction structures
• Advising managers on tax position and personal exposure
• Drafting and documenting transaction
• Advising on financial assistance and the whitewash procedure