Definitions for "management buyout"
Keywords:  buyout, lbo, mbo, leveraged, takeover
Going private through managements purchase of all outstanding shares.
Takeover of a company through management's purchase of all outstanding shares.
In a management buyout, managers or employees purchase the company itself or a business segment to enhance its autonomy. Executives becoming the top shareholder through an MBO can gain greater management freedom. MBOs became popular in the U.S. in the 1980s and in Europe in the 1990s. Their use has been spreading in Japan since around 2000. A tool for business realignment and corporate turnaround efforts, MBOs can also serve as a measure to fend off hostile takeover attempts, as publicly traded firms will go private through the move. (Aug. 23, 2005)
Keywords:  undertaking, difficult
a very difficult undertaking
management's discussion market capitalization
Keywords:  sale, business, unit
the sale of a business unit to its management. p. 369