Silicon Valley Self Regulation
management-buy-out.jpg

Management Buy-Out

photo by Financial Times Photos

photo by Financial Times Photos

MANAGEMENT BUY-OUT (MBO)

description

A management acquisition, also known as a management-led buyout (MBO), is a transaction in which the executives of a company make it a private company by buying a controlling stake in the company. These sorts of acquisitions are less common, and are typically financed by mostly debt.

helpful resources

Management Buy-Out selection at Investopedia