What is a management buyout (MBO)?

A management buy-out is the acquisition of a business by its core management team usually in coordination with an external party such as a credited lender or a private equity firm.

The motivation of an MBO stems from the owner who has a desire to retire and either sell the whole business or a controlling stake in the entity. Although being fairly compensated is a priority, the independence and culture of the business is very important post-sale.

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Management buy-outs (MBOs) are becoming increasingly popular for both owner-managed businesses and large corporates as a form of exit. Watch our latest animation to find out whether the MBO route is the right path for you and your business and the necessary steps you need to make. Find out more https://www.menzies.co.uk/management-buy-out/
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