Management-Buyout / MBO
A Management-Buy-out (MBO) is the case where an internal company acquisition takes place. In this instance a part of the current management or the whole management takes over the majority of the owner’s shares.
A MBO is suggested especially when there are no suitable successors within an owner’s family and when existing executives in the company are interested in acquiring the company, thus the expensive and time consuming search for external buyers is not necessary. In addition, there is often no need to examine the whole company in detail because the company’s executives usually know the company very well.
However, in a lot of cases executives do not have all the financial resources they need in order to buy the majority of a business and this is when we step in to help them find the right financial investor or financial institution that will participate in this transaction.