Management buy-outs

If a company's management alone or together with one or several investors acquires the business, it is called a management buy-out..

Management buy-out characteristics

A management buy-out mainly differs from other acquisitions in two respects:

• firstly, the management will often not have the financing required at the time when it expresses its desire to acquire the business
• secondly, the due diligence investigation will typically not be as extensive as generally the management is assumed to possess the same – if not better – knowledge of the affairs of the business than the seller. It is therefore essential for the seller that the transfer agreement does not contain any reps and warranties for matters that the management is familiar with or ought to know about

We have special expertise and extensive experience in representing both the seller and the buyer in a management buy-out and we are therefore able to provide the legal and commercial tools required to complete a well-planned, efficient and successful process.