Solicitor in Leicester for
Management Buy Outs / Management Buy Ins
I’ve worked with Steven for a number of yeears. Unusually for a lawyer, he is very commercially minded, and can get to the nub of issues straight away. Would thoroughly recommend him.
0116 3667 900
Management Buy Outs or Buy Ins (MBOs and MBIs)
Solicitor in Leicester specialising in Business Sale/Business Purchases
Whether you’re selling your business to a management team, or you’re buying the business from the current owners, Steven Mather is an expert MBO Solicitor in Leicester. Steven can help you structure the deal properly, protect your position and get the deal done on time and on budget. Steven Mather Solicitor is a specialist business solicitor in Leicester, backed by the national team at Nexa Law. Steven has acted for hundreds of businesses and so if you are looking for the best quality legal advice then you’ve found the lawyer. Every time Steven strives to provide:
- Plain English Advice
- Time – to understand your situation and all that you’re faced with
- Results – getting the best possible result for you
- Value – fixed fees for your certainty where possible
- Convenience – meetings by phone, video call or in-person at a time to suit you.
Why do you need a Management Buy Out (MBO) or Management Buy In (MBI) Solicitor?
Management Buy Outs or Management Buy Ins can be complex business and legal transactions. Our expert MBO Solicitors will help you, whether your the vendor/seller or the buyer – we’ve got decades of experience to ensure you get the deal done.
MBOs happen when an ambitious management team want to take over part or all of the business, or where the current shareholders have decided to exit the business for example at retirement or to extract cash out of the business to claim entrepreneurs relief.
Often in an MBO, a new company will be formed to purchase the shares from the vendor/selling shareholders. It may be that’s the purchase price is financed through debt, and commonly that may be through vendor loans – the buyers pay the purchase price over a period of years post-completion. Sometimes it can be financed through loan notes and debentures.
Whatever the structure, our MBO solicitor has the experience to help.
Our Management Buy In Solicitor understand that an MBO is not like a normal business purchase, in that both parties have typically got a great and longstanding relationship (as employer and employees) and therefore the last thing you want your lawyer to do is get in the way of the deal. However, it remains important to protect your position. Some key considerations include:
- Warranties – buyers will want certain warranties, sellers will want to limit what they warrant on
- Indemnities – does the target have any liabilities or potential liabilities that the buyers will want the seller to indemnify against?
- Restrictive Covenants – the buyers will want to ensure that the sellers are not able to start
- Due Diligence – does the buyer have full information about the company
- Tax issues – we’ll work with the tax advisors to structure the deal most efficiently.
Management Buy Out – where incumbent staff/managers buy the whole or part of a business from the current shareholders.
Management Buy In – where a team external to the target company lead the acquisition.
We will always endeavour to provide you with a fixed cost for whatever work you require.
To allow us to do that, we always suggest we hold an initial ‘discovery call’ to understand better your requirements.
Generally speaking, the price of an MBO is likely to be based on the overall complexity and a percentage of the value of the purchase. Fees are likely to range from around £3,500 plus VAT for a very simple basic low level MBO up to £50,000 plus VAT for something of high value and complexity.
So get in touch today for a free no obligation call with one of our MBO/MBI Solicitors.
How much will it all cost?
Steven works with fixed fees, and for each job a bespoke proposal is given.
We typically start at between 1-2% of the overall deal value in calculating a baseline for fees. However, sometimes that doesn’t quite work, particularly on deals below £250,000 – so we have a minimum fee of £2,500 plus vat for the smaller deals.
However, I’d much rather you give me a call on 0116 3667900 and have a chat about your requirements and how Steven Mather might help.
Incidentally, we rarely price match other solicitors – simply because the lower priced ones don’t provide the same level of service (or any!). However, we will usually be cheaper than ‘proper’ commercial firms (eg those with glass fronted offices, ones in Legal 500, ones that have a ‘coffee menu’… you know the ones).
Next Steps for your Business Sale/Purchase?
Whether you are buying or selling a business, doing as a share sale or an asset purchase, or you just don’t know – get in touch.
Steven’s typical client is probably like you – never sold a business before – and so we’ll help you every step of the way.