Tag Archives: MBO

When is a Management Buy-Out (MBO) a Good Idea?

MBO stands for Management Buy-Out and is a form of acquisition where a company’s existing managers acquire a large part or all of the company from either the parent company or from the private owners. An MBO is one alternative for an owner-entrepreneur to exit his or her business.  The management team buying the business can range from an experienced arm’s length team to family members who are active in the business.  The advantages of an MBO include…