What is it called when a company’s executive team buys all the assets and operations of the business they are currently employed with?
1. Employee Takeover
2. Management Buyout
3. Capital Transference
4. Share Division Arrangement
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2. Management Buyout.
In Management BuyOut (MBO) form of acquisition of a company, a majority of managers (executives) take debt financing or equity financing. Then they buy a majority or all of shares, assets and operations of the business they are currently employed with.
Thus they become the main investors/partners in the business. This form of MBO is preferred by bankers, shareholders and investors. Because the team of managers are quite familiar with the company's operations. So they can run it at a better profit and probably increase the profits too.
In Management BuyOut (MBO) form of acquisition of a company, a majority of managers (executives) take debt financing or equity financing. Then they buy a majority or all of shares, assets and operations of the business they are currently employed with.
Thus they become the main investors/partners in the business. This form of MBO is preferred by bankers, shareholders and investors. Because the team of managers are quite familiar with the company's operations. So they can run it at a better profit and probably increase the profits too.
kvnmurty:
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MANAGEMENT BUYOUT IS THE ANSWER FOR YOUR QUESTION MATE
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