Management Buyouts

A Management Buyout (MBO) occurs when a company’s management team purchases the business they manage, usually with the help of loans or external investors. This move allows the managers to gain full control and ownership, often leading to a more focused business strategy since they are directly invested in its success. MBOs can happen for various reasons, such as a parent company wanting to divest its interests or management wanting to pursue new directions without external interference. Overall, MBOs are a way for capable leaders to take charge of a company they know well.