Birmingham advisers at Blue Sky Corporate Finance have worked with the organization team in the overthrow of a Shropshire-based software firm for an secret amount.
Occam Systems, which supplies technology used by colleges and universities to manage student lodging, was sold in a business was monetarily backed by a high net-worth individual (Business Angel).
Blue Sky managing director Paul Heaven said it was a complicated deal.
He said: “A transaction of this type is made slightly more complicated by the fact that different parties have differing interests in the various legal documents that emerge during the process.
“The financial backer and the management team sit on the same side of the table during the negotiations of the contract to acquire the company but they have a different perspective when it comes to the negotiation of the shareholder agreement.
“In these circumstances it is important that the buy-in management team are properly advised.”
David Wilkes, now managing director of Occam and head of the management buy-in team, said: “A management buy-out is not a transaction that most entrepreneurs encounter every day.
“It’s easy to think that because you know the business you don’t need advice.
“In reality you’re dealing with professional advisers acting for the investor as well as those acting for the seller – your personal needs and those of the business can get pulled in both directions. Having Paul on hand to guide me, provide independent advice, and to review the mass of documents you have to sign was an immense help.
“Particularly in the couple of weeks leading up to completion it meant I could still find time to sell, critical to any business.”
Legal advice to the company during the deal was provided by Harrison Clark Solicitors in Worcester and advice to the vendors was provided by George Green Solicitors of Cradley Heath.
