management buyout

management buyout
The acquisition of a company by its managers, often in the face of closure, after the acquisition of the company by another group that wishes to dispose of it, or occasionally as a result of its owners wishing to dispose of the business through a trade sale. In some cases a management buyout occurs when a large corporate group of companies wishes to divest itself of an operating division. Financial backers tend to like managers who know the company's business intimately, staking their own assets and taking full control of the company with the aim of boosting its profitability. Popularized in the early 1980s, management buyouts have occasionally failed, but many have continued to profit and a few have been sold on to major groups. In a highly leveraged buyout, funding will usually consist of a small amount of equity, allowing the management team to obtain and retain control, considerable straight debt, and a certain amount of mezzanine finance.
See also: BIMBO

Accounting dictionary. 2014.

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  • management buyout — noun The purchase, by its management, of the majority of the shares in a company, esp when an outside takeover is imminent • • • Main Entry: ↑manage * * * management buyout UK US noun [countable] [singular management buyout …   Useful english dictionary

  • management buyout — (MBO) Acquisition of a company by the management team supported by venture capital investment and/or bank debt financing. Related links public to private transaction institutional investor …   Law dictionary

  • management buyout — n when a company s managers buy the company they work for …   Dictionary of contemporary English

  • management buyout — noun count a business deal in which the managers of a company buy all or the majority of its STOCK so that they own the company …   Usage of the words and phrases in modern English

  • Management buyout — A management buyout (MBO) is a form of acquisition where a company s existing managers acquire a large part or all of the company. Contents 1 Overview 2 Purpose 3 Financing 3.1 Debt Financing …   Wikipedia

  • management buyout — ( MBO) leveraged buyout whereby the acquiring group is led by the firm s management. Bloomberg Financial Dictionary See buyout * * * management buyout management buyout ➔ buyout * * *    ► See …   Financial and business terms

  • management buyout — UK / US noun [countable] Word forms management buyout : singular management buyout plural management buyouts business a business deal in which the managers of a company buy all or the majority of its shares so that they own the company …   English dictionary

  • MANAGEMENT BUYOUT — выкуп всех обращающихся акций компании ее управляющими и превращение компании в частную. Как правило, управляющие должны будут заплатить премию к текущей рыночной цене акций, чтобы заставить акционеров пойти на сделку. Если управляющие для… …   Финансово-инвестиционный толковый словарь

  • Management-Buyout — Der Begriff Management Buy out (MBO) bezeichnet einen Eigentümerwechsel eines Unternehmens, bei dem das Management die Mehrheit des Kapitals von den bisherigen Eigentümern erwirbt. Sofern die Belegschaft das Unternehmen übernimmt, wird dies als… …   Deutsch Wikipedia

  • Management-Buyout — Ma|nage|ment Buy|out auch: Ma|nage|ment Buy out 〈[mæ̣nıdʒməntbaıaʊt] m. od. n.; s; unz.; Wirtsch.〉 Aufkauf einer Firma bzw. Kauf von Firmenanteilen durch das eigene Management; Sy 〈kurz〉 Buy out [<engl. management buy out; zu buy out… …   Universal-Lexikon

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