Posted by James Worrall, Partner
Smart share buy-back deal secures growth
Royds Withy King’s Corporate team has been advising Virtua UK Ltd, a Wiltshire-based mobile telecoms consultancy company, ever since helping in relation to a management share buy-back deal that allowed it to expand its operation and increase its investment and …
Royds Withy King’s Corporate team has been advising Virtua UK Ltd, a Wiltshire-based mobile telecoms consultancy company, ever since helping in relation to a management share buy-back deal that allowed it to expand its operation and increase its investment and development into pioneering telecom network technology.
In the fast-paced world of telecommunications, being able to expand and move with the times is everything. With a new legal structure in place comes greater flexibility, thought Ron Brown and Brian Watt. They chose to instruct Royds Withy King’s corporate team, safe in the knowledge that their industry specialism in the Technology & Media sector will help them guide the company through the deal.
The team said “Rob and Brian are both highly skilled telecom engineering managers and have been at the forefront of some of the most pioneering developments in mobile technology. The management share buy-back enabled them to expand the business and increase its offer and scope of service.
The management share buy-back deal saw Rob Brown and Brian Watt, each owning 50% of the rapidly expanding business.
The deal saw the firm provide a greater focus on developing its business in areas of strategic importance such as TETRA and next generation technologies.
Since the deal completed, Rob and Brian have welcomed a new shareholder and chief executive, Andy Watts.
Bringing anyone in as a shareholder is a big step for a business and it is important, even if you already have a good long term relationship (as was the case here) to ensure that the relationship between the shareholders is appropriately regulated by means of a shareholders agreement.
In Virtua’s case, Royds Withy King provided a shareholders agreements (along with bespoke Articles of Association – the constitution of a company) which helps to answer some of the big questions of being in business together:
- what if someone wants to sell their shares
- what if we all fall out
- what if one someone leaves or dies
- should we all have the same voting rights
- what dividends do we get
- what decisions do we all have to agree on
- can someone compete with the business if they leave
- does my shareholding entitle me to be a director
- what if most of us this its time to sell up – can we force the minority to sell as well.
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