& the importance of managing the personalities
- Well known consumer brand - operations in UK, Europe, USA and Central America
- Deal > £20 million
- Conflict:
- Highly paid minority shareholders who managed the business; and
- Majority family shareholders who had inherited shares, and did not work in the business, nor did they receive dividends or salaries
- Potential trade disposals had been previously thwarted
- by Management; and
- the refusal of the majority shareholders to sell to a MBO team
- We identified the problems & found a commercial solution:
- a 'BIMBO' - an external MBI candidate buys the shares of the family majority shareholders
- It was negotiated that staged payments were made to the majority shareholders
Corporate Finance, just like business, is actually about people! Your advisors need to be able to quickly empathise with all characters involved, so that a solution can be found to keep everyone happy and the deal moving to a successful conclusion.
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