What is a management buyout (MBO)?

A management buy-out is the acquisition of a business by its core management team usually in coordination with an external party such as a credited lender or a private equity firm.

The motivation of an MBO stems from the owner who has a desire to retire and either sell the whole business or a controlling stake in the entity. Although being fairly compensated is a priority, the independence and culture of the business is very important post-sale.

If you have any other questions, please comment below. If you enjoyed the video and found it helpful, please like and subscribe to FinanceKid for more videos soon!

For those who may be interested in finance and investing, I suggest you check out my Seeking Alpha profile where I write about the market and different investment opportunities. I conduct a full analysis on companies and countries while also commenting on relevant news stories.

[ Ссылка ]

свернуть