Throughout the Business Lifecycle situations may arise where directors or shareholders may wish to leave the company. In such instances as a change in the day to day running of the company or composition of the majority of shareholders the following issues may be relevant:
Buy-Out is the term applied when a business is sold to the existing management team. Often this occurs when companies seek to dispose of parts of the business or where the existing owner-manager is looking to retire.
A Management Buy In (MBI) takes place where people decide to invest in a business and take over its running in one go. The most significant issue in an MBI is securing the capital necessary to buy in to the company.
It may be the case that you will wish to sell the business as a going concern and relinquish all control. In this event Mayo Wynne Baxter can help, not only with the company law aspects but also with any connected sale of property or TUPE considerations. Again, issues will arise as to whether it should be a Share sale or an Asset sale, and structuring the sale to reflect any tax advice given by your accountant.
For further information please contact our Business Team.