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MBOs, MBIs & LBOs

Sometimes the best option for the owner-manager interested in selling their business is to sell it to the management team. They have the knowledge and drive to take the business forward, so this option provides a lower risk sale for most owners.

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Why Progeny?

We can provide all the assistance and advice needed on how to finance and undertake management buy-outs and buy-ins.

We have worked with both owners selling to management and management teams backed by private equity who are buying the business they work in.

Getting legal counsel that understands business

Selling a business can be one of the most stressful periods of your life. At Progeny, our focus is on you. We look at your individual circumstances, requirements and life goals post-exiting a business to add the best value. It is essential to have the right legal counsel to help you prepare and navigate inevitable hurdles.

UK locations

With offices throughout the UK, we offer face-to-face services nationwide. Giving you the opportunity to meet your advisers in person to discuss your specific needs.

B-Corp certified

As a B-Corp certified firm, we are proud to join a select group in the UK professional services, committed to high standards of social and environmental impact globally.

Eprivateclient 2023

Progeny Law and Tax have been selected as one of the Top Law Firms by eprivateclient which recognises the top private wealth law firms and departments across the UK.

A combined approach

Combining guidance and support from Progeny’s Corporate Legal team, Private Legal team and Wealth Management team, we are able to provide truly holistic support.

How we can help you with your MBO, LBO or MBI

Our experience in helping clients with MBOs and MBIs across a range of sectors means that we are well positioned to provide the guidance and expertise needed to navigate these complex processes. We can offer support with:

Funding for the buyout – private equity and bank funding

If you are seeking legal guidance on how you can fund a buyout, our experienced team will be able to provide guidance and support.

Tax planning for the owner

As Progeny has a team of tax experts in-house, we are able to guide you through the whole process from start to finish and advise on the most tax efficient structure.

Advising owners who are rolling over some equity

We can offer legal and tax advice for any shareholder rolling over their equity into the buyout vehicle.

Tax planning

Tax planning to secure Entrepreneurs Relief (now Business Asset Disposal Relief) for the founder and management team.

Negotiating with private equity houses

Securing acceptable terms with experience of how PE houses approach deals and their expectations on the return on their investment.

Frequently Asked Questions

MBOs vs MBIs

MBOs occur when an existing company management team acquires a majority shareholding of a company. A MBI happens when a team from outside of the company takes over ownership and replaces the existing management of the company.

What is an LBO?

A leveraged buyout or LBO is when an acquisition of a company is done using borrowed money.

What are the costs during the business exiting process?

Usually you would be looking at legal and corporate finances fees, whereas at Progeny we can provide a complementary meeting with both our tax and wealth adviser teams.

Do I need a financial director for my business to exit?

Having a financial director will certainly impact buyer confidence in the financial data you provide, though it may not change the overall price.

Top things that halt the sale of a business?

Firstly, uncovering a liability in the business that was previously undiscovered. Secondly, market conditions changing drastically significantly impact the buyer’s market.