Management Buyouts Information
The Accountant
An accountant - who has good ‘MBO’ experience, your local friendly accountant may not be the answer, and if you need to impress a U/C venture capitalist or bank, its best to use a well know respect accountant.
The Legal Representatives
A Solicitor - you need to select solicitor who is used to helping clients through the legal maze that ‘MBO’s’ bring with them, again if you use a well known solicitor investors are likely to feel a lot more comfortable, when considering your funding.
The Fund Raising
Choosing the right investor or funding providers – you need to research backgrounds of the venture capital industry, banks and even private investors, a good accountant may well be able to recommend the correct route for your ‘MBO’.
The Bank
Choosing the right bank for your operation – someone you can work with and make sure that you are introduced to the banks experienced personnel when dealing with MBOs (this may not be the local bank manager.)
The Insurance Broker
Insurance and Protection needs such as Directors & Officers Liability, Employment practice liabilities, Directors warranties, before and after the event covers, key man covers, Public & Employers Liability, Professional Indemnity & Pension arrangements etc… There are many different types of liabilities that management and Directors could be taking on when they get involved with a management buyout you need to appoint a specialist broker in this field it is unlikely that a local high street broker will have either the contacts to place some of the insurances needed or the experience to deal with an (‘MBO’ Management buyout).
Unfortunately insurance needs and requirements tending to take a background, while the legal documents, business plans, negotiating with banks, diligence memorandum of association, support agreements, option agreement, warranties etc are being considered. In reality, however, urgent attention should be given to Directors & Officers protection at a very early stage.
