Dyke Yaxley, a member of The Corporate Finance Network with two offices in Shropshire and one in the United States, has successfully advised a Geophysical specialist business, on a management buy-out.The Dyke Yaxley team, led by Director Marie Bramwell and Consultant Keith Winter, identified a number of options for the shareholders before deciding that a management buy-out was the most suitable option.
Dyke Yaxley began the process by valuing the business. This led to negotiating the share price between the various parties which was made particularly difficult because the purchasers wished to pay more to the retiring director for his shares than they did the ‘sleeping' director. Likewise, the retiring working director wanted the third existing director, who had helped build the business up, to buy his shares at a lower figure than the two new directors who were being promoted.
Marie and Keith negotiated the share price to the satisfaction of all parties. This enabled two directors to retire and enable two new directors to take the company forward as they choose.