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Glossary Venture Capital / Term

Management buy-out (MBO)

A private equity firm will often provide financing to enable current operating management to acquire or to buy at least 50 per cent of the business they manage. In return, the private equity firm usually receives a stake in the business. This is one of the least risky types of private equity investment because the company is already established and the managers running it know the business - and the market it operates in - extremely well.

Permanent link Management buy-out (MBO) - Creation date 2020-02-03


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