Upside-down management deal
Our client acquired a company which acted as a distributor of American snacks to supermarkets in the UK. The client had previously worked for the company. This was a management buy-out with a twist, as the vendor owner negotiated that he would continue to work for the company for a period of three years after completion, while being paid an earn-out based on results. Working with the two parties to agree the financial and commercial deal whilst avoiding a conflict and acknowledging the close relationship of the buyer and the seller (who continued to work together on a daily basis), required us to provide sensitive, pragmatic and even-handed advice to conclude the deal.