a group of managers, anticipating future profits, borrows money in order to buy the company they run from its shareholders.
The purchase of a business by its management team, normally with the financial assistance of an institutional investor. MBOs are often targeted as suitable investments by development capital practitioners. (See also Leveraged Buy-out).
The acquisition of a company or a subsidiary by the existing management. It is frequently used as a means of divestment by companies seeking to focus on their core activities. The new owner-managers of the buy-out frequently improve its performance, as they are usually well aware of any remedial action required and have a serious incentive in the form of their equity stake. Additional capital is provided by financial institutions and venture capitalists and also in many cases by allowing other employees to buy shares. In a few instances, all employees have participated in a buy-out; these are sometimes called employee buy-outs.
The purchase of a company’s public shares by its existing management – in effect taking the company private.
The purchase of a company by its managers, usually with outside backing.
a popular way of introducing a black empowerment element to the business
a solution involving a buyout of a company, subsidiary, division or product line, often initiated by the management
Take-over of a company by existing management.
the buy-out where buyer is the incumbent management.
The purchase of a business by its existing management with the help of a group of financial backers. The managers put up a relatively small amount of the total finance but usually gain a disproportionately large share of the equity. Buy-outs are funded largely by loans secured in the assets of the company itself.
Funds provided to enable operating management to acquire a product line or business, which may be at any stage of development, from either a public or private company.
The acquisition of a business by its existing management. MBOâ€(tm)s are usually funded by venture capitalists
A private equity firm will often provide financing to enable current operating management to acquire or to buy at least 50 per cent of the business they manage. In return, the private equity firm usually receives a stake in the business. This is one of the least risky types of private equity investment because the company is already established and the managers running it know the business - and the market it operates in - extremely well.
Where a business is bought by its management team usually with the help of an institutional investor.
A transaction where a company is bought by its existing managers from the person, family or company which owns it. Usually this involves their raising development capital for a new company which is then used to buy the target company.
The takeover of a company (with or without leverage) by the management team in place.