Management Buyout (MBO)

A management buyout (MBO) is a transaction where a company's management team purchases the assets and operations of the business they manage. MBOs often occur in private companies, allowing managers to gain control and drive growth.

• MBOs allow management to gain control of the company.
• They often occur in private companies.
• MBOs can align management’s interests with business success.
• These transactions typically involve significant financing.