Sep 17, 2018

Management buyout (MBO).

An MBO involves the management team pooling resources to acquire all or part of the business they manage

Risk is reduced by the fact that continuity of the company's business is better assured when the people who have managed it are its buyers. Since the purchasers are an experienced management team who understand the business and its needs, existing clients and business partners often feel reassured, improving the prospects for a solid return on investment.