Management buy-outs, buy-ins and private equity

Management buy-outs (MBOs) and management buy-ins (MBIs) are complex transactions, requiring experienced commercial legal advice. Alongside private equity law, MBOs and MBIs are a core-skill of the commercial team at Talbots Law.

Negotiation skills are key when it comes to MBOs, MBIs and private equity and in this we excel.  Our commercial team will collaborate with you to ensure you are clear about the terms that must be included for the deal to conclude and what your ‘walk-away’ point is.

Private equity

Our commercial team play an important role in any deal. We act for both private equity firms and individuals seeking investment and will vigorously negotiate the terms on how each party contributes and/or receives their cash and the ROI expected.  Our services also extend to assisting private equity firms and individuals buying and selling investments.

We are experts in making deals happen and ensuring our clients are complying with the law. We structure and negotiate the acquisition and finance documents when a business is purchased, close the transaction, and establish the business and legal structure for the new company.

MBIs

If a business is to be transferred and the existing managers do not wish to by the organisation, an external management team can affect a MBI.

MBIs require strong negotiating skills on the part of the legal team involved. The seller will want to minimise uncertainty for the existing workforce and customer base and the MBI team will need to grasp the mechanics of an unfamiliar business in a short period of time. However, fresh management can generate renewed growth by bringing in additional expertise and a different perspective.  We look to capatalise on this aspect and work tirelessly to ensure the deal goes through for our clients.

MBOs

If you are part of an existing management team that is aiming to purchase a business, we will project manage the process for you.  This will allow you and the rest of the orgnaisation’s management to concentrate on running the business and driving its growth.

Why choose Talbots Law for management buy-outs, buy-ins and private equity?

Our commercial team is dynamic and innovative.  We do not do ordinary and this is a key quality, which makes us so successful in this specialised area of law.  You can rely on us to collaborate both internally and externally to overcome any potential barriers to both the deal and obtaining the equity required.

Although the law pertaining to MBIs, MBOs and private equity is complex, we make it easy for our clients to understand any legal technicalities and processes involved.  Our commercial team works quickly and effectively to negotiate and close deals while the iron is hot.

Management buy-outs, buy-ins and private equity FAQs

What is ‘hurt money’?
This rather unfortunately named term refers to the amount of personal money private equity firms will expect the management team to invest to demonstrate their commitment to making the project work and delivering returns.

Are MBIs and MBOs risky?
Not if they are well structured.  You need to take account of possible shortfalls in performance and ensure that the business can still meet its financing obligations in terms of repayment of debt and interest and the dividend requirements of any equity investors.  Our experienced commercial solicitors will ensure this happens and conduct a thorough due diligence on both the deal and the business.

Let our experts project manage your MBO, MBI and private equity deals.  To make an appointment to discuss matters in the strictest confidence, please call us today on 0800 118 1500.

  • Muneeb Dean
      • Muneeb Dean
      • Director and Head of Company Commercial Services
      • 01384 445868
      • 07791 241544
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  • Nicola Reeve
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      • 07932 679673
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