commercial law

Management buy outs and buy ins

Both management buy-outs and buy-ins, as their names would suggest, greatly affect the running of a business. They often take place when a company is not performing well and can lead to a turn around of its fortunes.

Management buy-outs

A management buy-out occurs when the existing management team of a business purchases the company they work for.

The legal process sees the management team setting up a new company. This company is then used to acquire their employer’s business or company.

Management buy-ins

A management buy-in sees an outside company or group of individuals form a management team to replace the existing team of the target business.

Unless one already exists, a new company is set up in order to purchase the target company. Following the purchase the new management team is brought in.

The aim of a management buy-in is often to improve the business and increase the profitability of the company being targeted.

We can help

Management buy-outs and buy-ins are complex arrangements with many pit falls for the unwary.

Wallace Robinson & Morgan’s experienced team of commercial solicitors can guide you through either procedure. We take care of the legal issues surrounding the process so you can concentrate on running a business.

If you are considering organising a management buy-out or buy-in please get in touch with our commercial team - ask for Paul Hughes on 0121 705 7571

or email paulhughes@wallacerobinson.co.uk

Further reading:

Business Formation (Commercial Law)

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