Management buy out (MBO)

Management buy out (MBO),

Definition of Management buy out (MBO):

  1. Purchase of a firm (or one of its divisions) by the existing management, usually with outside financing. MBOs generally occur where the firm (or its division) is under threat of closure, or when the parent firm wants to divest a subsidiary. Called employee buy out if all employees participate in the purchase.

Meaning of Management buy out (MBO) & Management buy out (MBO) Definition