Investment Banking

Management buyout

A management buyout (MBO) is a transaction where a company’s management team purchases the assets and operations of the business they manage. The main reason for a management buyout (MBO) is so that a company can go private in an effort to streamline operations and improve profitability. MBO’s can occur in companies and businesses of any size or any industry, and can be simply used to buy the existing owners out of a business but can also be used to break a certain department or arm of the business away from the main operations, or even to save the company from administration.