What is the definition of Management Buyout (MBO)?
- Posted on November 20, 2019
- Financial Terms
- By admin admin
A Management Buyout (MBO) is a corporate action taken by the management of a firm, where they buy all the available shares in their own company in order to take the company private. This is done because the management feels it can improve the firm but that the actions they take may not be approved by existing shareholders, so they take full control to do what they think needs to be done, frequently teaming up with private equity or venture capital firm in the process.
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