MBO


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MBO

Management Buyout

The act of the senior management of a publicly-traded company buying all of the company's shares outstanding. A management buyout gives the management complete control of the company and allows it to operate without recourse to shareholders. A management buyout is usually heavily leveraged and is a form of going private.

MBO

see MANAGEMENT BY OBJECTIVES, MANAGEMENT BUYOUT.
References in periodicals archive ?
Nevertheless, a well-structured MBO will take account of possible shortfalls in performance (because they certainly occur) and ensure that the business can continue to meet its financing obligations, be they debt repayments, interest, or dividends distributed to equity investors.
For nearly two decades MBO has focused on this market and has built the only complete business operating system platform designed for professionals who want to deliver their services as independent contractors.
The effective implementation of the MBO is scheduled for 2016, while the first budget developed according to the MBO standards will be that of 2017, said director general of the MBO unit Adnene Gallas.
Six months after the MBO, when we changed our business plan, we knew we had the right strategy which we could communicate clearly.
With a generally strengthening investment outlook and an increasing number of company owners considering their exit strategies after a prolonged period of rebuilding, we anticipate 2015 will see a resurgence of the MBO market underpinned by the support of vendor funding sitting alongside bank debt and private equity investment.
The four answers discussing the MBO approval were similar to the responses given to the ethical question.
Earlier this year, the management team involved in the initial MBO sold the company on to the next tier of management in a highly successful deal which saw a healthy return for MSIF and the exiting management team.
In addition, the management team in an MBO will be required to enter into a shareholders' agreement with the investor, and will have to agree to the investor receiving certain information and having the right to veto certain acts by the company.
P&H changed hands in a 172m [pounds sterling] MBO in 2002 but likely bidders this time around could include logistics companies because of the natural fit with P&H's operations as a delivered wholesaler.
An MBO is often conducted to save managers' jobs or maximize their financial benefits as well as to ward off aggressive buyers.
MBO provides senior management with a timeline and a score-keeping record by having each step of the sales process documented in advance and assigned a time-to-completion statement.