Management buyout (MBO) | Practical Law

Management buyout (MBO) | Practical Law

Management buyout (MBO)

Management buyout (MBO)

Practical Law UK Glossary 4-107-6803 (Approx. 4 pages)

Glossary

Management buyout (MBO)

A form of buyout in which some or all of a company's existing management team purchase the company, or part of it, supported by institutional investors (through private equity or venture capital investment) and/or third-party debt. When significantly funded with borrowed capital, such a transaction may also be known as a leveraged buyout.