Paul Macdonald

The law firm transacted a vendor induced management buy-out of McDonach IT Consultancy Ltd, enabling founder Kenneth McDonach to exit from the company and the business ownership to transition to key employees who have helped him build the business across many years.

The transaction enables newly appointed directors Kenneth Irvine and Bryan MacNair, who collectively possess decades of industry knowledge and experience, to take majority control of the business. Kenneth McDonach will retain a minority interest and stay on as director to provide support to the new management team, whilst moving towards retirement.

Paul Macdonald, a partner in the corporate, commercial and regulatory team at Harper Macleod, who specialises in implementing business succession transactions, led the legal advice on the structuring and implementation of the transaction, with the support of Aiden Paterson and Duncan Walker. Ian Watson of Watson & Co provided counsel on the accounting and tax aspects of the transaction.

Mr Macdonald said: “This transaction allows the business to seamlessly move from owner to management and safeguards the continued success and stability of the fantastic IT consultancy business built up by Kenneth McDonach. I’m sure the new leadership team will take this great business forward and it will go from strength to strength. A vendor initiated management buy-out (VIMBO) was the optimal corporate transaction form to meet the aspirations of all parties.”