Sales to managerial employees are simpler than external sales, as the employees know the company well, and there will be few changes to daily operations.

The process is discreet to the market, and there is less uncertainty among the company’s other employees, clients, and suppliers. The downside to an MBO is that there are few synergies from the buyer’s side, and the company may not necessarily become more competitive after the sale. On the other hand, there is often an increase in revenue and profits in companies that have carried out an MBO due to increased motivation among employees, who have now become shareholders.

The team at Veridian Corporate has completed several internal transactions with good models for such takeovers, in which processes, finances, and agreement structures are very thoroughly established. Legal expertise adapts and assures the quality of the agreements for the project in question.

• Valuation of businesses, making value visible
• Review of various financing solutions/takeover models that make a transaction more likely
• A due diligence (DD) in an MBO process is relatively simple, as the employees know the company.
• Documentation upon entering a Letter of Intent (LOI) or Share Purchase Agreement (SPA), assistance with preparing any shareholder agreements, and handling various tax questions surrounding the transaction.