Management Buy-Out (MBO)/Management Buy-In (MBI)

One of the many options open to entrepreneurs seeking to own and manage a business is the realisation of a Management Buy-Out (MBO).  This is where current managers or senior employees, and/or director(s) of a business decide to purchase a business from the existing owner(s) or shareholders, together with the help of non-executive directors from outside the business.
 
This can be done by a simple acquisition of the business as a going concern into a newly formed company, or it can be the purchase of share capital within a new company structure.

An MBO is a popular choice for the management of a company, say, where:

• the current shareholders wish to exit the business
• the Managing Director is retiring; or
• when a director/owner wishes to re-structure and sell-off part or all of the business. 

We also advise family owned businesses and companies where the principal directors/owners wishes to sell the ongoing business to other family members by way of succession.

With a Management Buy-In (MBI), an outside third party company or entrepreneur acquires all or part of a business or company as an investment opportunity for them. It might involve selling of part of the total share capital so that the company has an outside investor, or investors, often as new Board members. These external investors buy their interest and control in the company and, in return, receive financial dividends. An MBI might be of interest to a company who wishes to raise finance for capital growth or greater expansion, or who seeks external expertise at Board level eg. perhaps a new director who has expertise of a new market or product.

Whether it is an MBO or MBI, there is huge importance in quoting the right price for the purchase or sale of the business or shares and preparing the business for sale.  Brethertons can help with structuring the sale and the purchase process and in negotiating the deal to a successful completion. We can also assist with company and share valuations and advise on how to go about raising finance to make the best of an acquisition opportunity.

Why Choose Brethertons?

Our team of lawyers can provide you with a tailored solution to meet your legal requirements in an efficient and speedy manner. Our clients tell us that we offer a great service which is cost-effective, and we keep you abreast of costs at every stage so that there are no surprises. How we can help.