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. This agreement, structured under Indonesian law and regulatory framework, particularly Law No. 40 of 2007 on Limited Liability Companies, details the complete transaction process from initial terms through to completion. It includes essential elements such as purchase price mechanics, warranties, representations, conditions precedent, and completion obligations. The document must comply with Indonesian investment laws, capital market regulations (if applicable), and relevant sector-specific requirements. It's particularly important in scenarios where business continuity and management expertise are valued, while providing a structured exit for existing shareholders. The agreement typically includes provisions for financing arrangements, regulatory approvals, and post-completion management obligations.
