Document background
The Management Buyout Agreement is a crucial document used when a company's existing management team seeks to acquire ownership from current shareholders or a parent company. Under Austrian jurisdiction, this agreement must comply with the Unternehmensgesetzbuch (UGB), relevant corporate laws, and financial regulations. The document typically becomes relevant during company succession planning, corporate restructuring, or when parent companies wish to divest subsidiaries. It comprehensively addresses share transfer mechanics, purchase price determination, financing structures, warranties and representations, and post-completion obligations. The agreement must carefully balance the interests of selling shareholders with those of the purchasing management team while ensuring compliance with Austrian corporate governance requirements, tax implications, and employment law considerations.
