Employee buyout (EBO)

Employee buyout (EBO),

Definition of Employee buyout (EBO):

  1. An employee buyout (EBO) may also refer to a restructuring strategy in which employees buy a majority stake in their own firm. This type of restructuring is a company takeover by its workers. In either example, EBOs are most often employed when companies are in financial distress.

  2. A scenario whereby employees of a company pool together and purchase a majority state in their company.

  3. An employee buyout (EBO) is when an employer offers select employees a voluntary severance package. The package usually includes benefits and pay for a specified period of time. An EBO is often used to reduce costs or avoid or delay layoffs.

How to use Employee buyout (EBO) in a sentence?

  1. An employee buyout can also refer to when employees take over the company they work for by buying a majority stake.
  2. Employee buyouts are used to reduce employee headcount and therefore, salary costs, the cost of benefits, and any contributions by the company to retirement plans.
  3. A buyout package usually includes benefits and pay for a specified period of time.
  4. An employee buyout (EBO) is when an employer offers select employees a voluntary severance package.

Meaning of Employee buyout (EBO) & Employee buyout (EBO) Definition