An increasingly popular method for allowing business owners to realise wealth, and sell their business is through a Management Buyout.
We have extensive experience working with both Management and Owners to guide them through the process whilst ensuring minimal disruption to the ongoing business operations.
Often the benefit is that the change in business management will not cause disruption to staff and customers, and provides an opportunity to structure long-term plans for the business.
We recognise that this type of transaction often requires more care, due to the relationships involved. Often your Management team will be less familiar with the requirements involved, however these transactions often require less strenuous due diligence with the deep business knowledge held by management.
Our role would include:
- outlining the objectives of the existing owners
- facilitation of meetings to discuss the goals of owners and management and their personal situations
- designing management incentive schemes which will maximise the value of the company for both sides including the implementation of performance hurdles and timeframes
- managing the approach to the vendor (if unsolicited)
- developing a tax effective and equitable structure for both parties
- structuring a deal that will support the business into the future
- facilitating meetings between parties to establish a shareholders' agreement
- sourcing funding if required