Management Buyout

Duration – 6 months

Fee – Rs 40000 per month as a retainer 

Success Fee – 2% or Lump Sum

A management buyout (MBO) is a transaction where a company’s management team purchases the assets and operations of the business they manage. Most of the time, the management team takes full control and ownership, using their expertise to grow the company and drive it forward.

Procedure:

  1. Establish Credibility with owners.
  2. Opportunity to purchase the business you work for
  3. Assess the opportunities & Risks
  4. Assess the commitment required ( Money, Managers & Time)
  5. Write a Business plan
  6. Negotiate Terms Of the Sale
  7. Raise Finance
  8. Complete Due Diligence
  9. Close deal (becoming owners)

Documents required-

  • Share Purchase agreement
  • Disclosure Agreement
  • Articles of association
  • Investor agreement
  • Security documents, inter-creditor deed, and cross guarantees
  • Resolution
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