Dealmakers: Thinking ahead - delivering a successful MBO

By Pauline Rigby Partner, corporate and restructuring, Forbes Solicitors

Positively, here at Forbes we can report that in recent times we have seen a rise in the number of successful MBOs completed within the region.

MBOs vary in the way that they are structured, their size and of course the circumstances giving rise to the MBO itself.

Firstly, let’s focus on the management team itself which is the most important factor.

In the event that external funders are involved, they will scrutinise the management team to ensure that it has the ability and necessary skills to take the business forward backed by their funding.

But other commercial factors, such as ability to survive without the existing shareholders, its strategic plans and any legal risks need to be reviewed.

Most sellers favour MBOs for a number of reasons: many owner managers feel emotionally attached to their businesses and continuity and protection of staff can be a leading factor for a seller when favouring an MBO verses a trade sale. All in all successful MBOs are not only a joy for corporate lawyers to work on; they are of course a positive to the region too. Fingers crossed they continue at their present rate.

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