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Home > QFINANCE Dictionary > Definition of management buyout

Definition of

management buyout

Mergers & Acquisitions

takeover of business by its management the purchase of an existing business by an individual manager or management group from within that business.

Related definitions of "management buyout"

Recommended Further Reading (Term count)
  • Buyout
    Buyout usually refers to the acquisition of the total shares in a company or a controlling interest, such as 51% of the shares in a company. The buyer will then become the owner of that company and its business.In certain cases, the management of a company will buy the business of that company. This is also known as a management buyout. The management will already be familiar with the business and be in a good position to buy. Finding the...
  • Dealing with Venture Capital Companies
    This checklist outlines how to deal with venture capital companies.
  • Management Buyouts
    This checklist outlines what constitutes a management buy-out (MBO).
  • Leveraged Buyouts: What, Why, When, and How
    by Scott S. Johnson
    A leveraged buyout (LBO) is the acquisition of a company financed by debt. It is not unlike the typical purchase of a residence where the majority of financing is derived from a mortgage, and the balance from cash (equity) contributed by the buyer.Figure 1. Case study: Sample LBO vs all equity acquisition The use of debt in an LBO leverages the equity return, providing the equity holder with the possibility of higher returns at the cost of...

Definitions of ’management buyout’ and meaning of ’management buyout’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’management buyout’ and other financial terms with our online QFINANCE Financial Dictionary.

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