Management Buy Out

Management Buy Out

Posted by John Spratt, on February 26, 2020. Tags: , , ,

It is always satisfying to be instrumental in getting a successful management buy-out off the ground.  Our corporate team acted for a senior manager of a public company who had the opportunity to take the part of the business that he managed into his own ownership by a management buy-out.  We were instructed on behalf of him and his team.  His opportunity to complete this MBO existed only in a relatively short window of time, and the challenge was that at the very end of the process it became apparent that one of the members of his MBO team was unlikely if not unable to make the financial contribution to the team which he had promised.

One of our clients for whom we had recently acted on the sale of a substantial manufacturing company had mentioned that if we saw any opportunities for him to invest in, then we should mention them to him.  We got on the phone to this individual and set up a meeting between him and our present client.  They hit it off straight away and not only was the finance provided in short order, but the person introduced also brought valuable skills to the team.

We are delighted to say that the resulting company went from strength to strength and not too long afterwards we were instructed to act on the sale of the company back into the public sector.