Document background
The Management Buyout Agreement is a crucial document used when a company's existing management team wishes to acquire ownership from current shareholders. This agreement, structured under Dutch law, encompasses all essential aspects of the transaction, including detailed purchase terms, warranties, and governance arrangements. It's particularly relevant when management seeks to take control of a business they understand well and believe they can grow independently. The document must comply with specific Dutch legal requirements, including Works Council consultation where applicable, and typically involves coordination with financing arrangements. The agreement serves multiple purposes: it transfers ownership, establishes new governance structures, protects both buyers' and sellers' interests, and sets out the framework for the company's future operation under management ownership.
