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Five questions to ask yourself before you take the plunge. It looks like the climate is improving for management buyouts. In the past couple of weeks alone, Xerox Corp. reportedly has met with at least three leveraged buyout (LBO) firms to discuss the disposal of certain assets as it attempts to raise as much as…

There are three principal legal workstreams, being: Sale documents Governing the terms on which the target’s shareholders are willing to sell their interests. Equity The management team’s terms as ongoing shareholders post-MBO, usually through Equityco (see diagram above). This workstream may also include revisions to the management team’s employment terms. Debt If the MBO is…