This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

How to do a management buy-out!

By Alan Pink, June 2020

Alan Pink looks at typical structure for a management buy-out and some issues that can arise. 

A management buy-out (MBO) can often be the ideal way for a business owner to realise the value that they have built up in his company over the years. The fact of the matter is that it is often the senior management, rather than an outside purchaser, who are best placed to take over the reins when the main men/women decides to retire, or give up their interest in the business for other reasons.  

This article assumes that the business is run in limited company form, because this is how the majority of such businesses are set up in practice, and also the set up that can give rise to the most problems.  

The structure of the MBO 

Assuming that the decision has been made to sell the company to its current non-shareholding senior management, the question of how the MBO should be

This is one of our 1841 Premium articles

To see this article in full and unlock access to our complete library of 1841 articles click 'subscribe & unlock' below:

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee

Begin your tax saving journey today

Each month our tax experts reveal FREE tax strategies to help minimise your taxes.

To get Tax Insider tips and updates delivered to your inbox every month simply enter your name and email address below:

Thank you for signing up to hear from us!