| Commentary

151 General

| Commentary

2: LOCK-OUT AGREEMENTS

151 General

In view of the complexity and length of time it is likely to take for the management to put together the finance for a management buy-out, it is standard that the management enters into a lock-out agreement (that is, an exclusive negotiating agreement) with the sellers for a fixed period of time. However, it is not always possible to persuade the sellers to enter into such an agreement. Lock-out agreements must be very carefully drafted if they are to enforceable1.

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial