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Anonymous

03 Dec 2019

Stocks

What is a management buyout (MBO)?

And how does it affect companies?

Discussion (3)

What are your thoughts?

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Kelvin Seetoh

03 Dec 2019

Founder at Kelvestor.com

Great answers by Alvin and Junus!

Adding a personal observation:

Companies that undergone MBO tends to outperform. With greater skin-in-the-game, comes alignment. Not always, but likely!

Definition: A management buyout (MBO) is a transaction where a company’s management team purchases the assets and operations of the business they manage.

How it affects companies: MBOs are potentially appealing to professional managers because of the greater potential rewards and control from being owners of the business rather than employees. ​​​

Alvin Teo

21 Oct 2019

Aviva Relationship Consultant at Aviva Affinity Channel

https://en.m.wikipedia.org/wiki/Management_buyout

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