Peter Rayney looks at the practical implications of structuring a company purchase of own shares using the ‘multiple completion’ route
Substantial commercial and economic uncertainty has been created by the Covid-19 pandemic. I have seen first-hand a number of owner managers responding to these pressures by accelerating their retirement plans.
In almost all cases, the owner-manager’s exit has been structured using a company purchase of own shares (POS). Their shares would be purchased by the company, leaving the senior management team in place as the new owners of the company.
Financing the deal
Financing a significant POS is not always easy. Company law invariably demands that the purchase price for the shares bought back by the company is paid immediately (CA 2006, s 691(2)). Companies cannot therefore buy 
