



Case Study: SALIENT FEATURES OF A MANAGEMENT BUYOUT (MBO) Background note
Title
SALIENT FEATURES OF A MANAGEMENT BUYOUT (MBO) Background note
Author
Ward, M
Pages
4 pp
Product Type
Reference #
104-068-5
Teaching Note
Institute
Setting
Year
Keywords
South Africa
Summary/
Abstract
Abstract
A management buyout (MBO) involves the purchase of an existing business by its senior management team. It has proved itself to be an attractive vehicle for management, who can accumulate wealth in the form of an equity participation in their company. This note looks at salient features of MBOs, such as how they are structured and financed, and how equity is allocated. It also examines how to evaluate an MBO candidate to gauge whether it has potential for success.






