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What is a management buy-out (MBO)?

Management Dictionary
Entrepreneurship, Governance

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A management buy-out (MBO) is an investment strategy in which a company’s management team acquires a majority or full ownership of the business. This approach gives managers the opportunity to become owners of the company they work for, thereby increasing their motivation to improve its performance.

An MBO offers several advantages, including better decision-making based on internal knowledge of the company, continuity of leadership, and greater confidentiality compared to a sale to an external buyer.

Links & resources

https://www.youtube.com/watch?v=ofFo1Aj25Zg
https://www.youtube.com/watch?v=g2x2rrL0aFk
https://www.youtube.com/watch?v=4ZY3w_n3rOs

Keywords

management buy-out, MBO

Author(s)

BESANGER Serge

Professeur

INSEEC-U

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