Key points
- An MBO involves a company’s management team combining resources and raising finance to acquire all or part of the company they manage.
- There are many reasons to consider an MBO including a reduced risk of failure going forward in the transaction strategic realignment and succession planning.
- MBOs can be a complex process.
- Another method of business sale is by using employee ownership trusts which offer attractive tax advantages.
One of the most common methods a business can deploy when looking to sell its business is through a management buyout otherwise known as an MBO from a team within the company.
In its simplest form an MBO involves a company’s management team combining resources and raising finance to acquire all or part of the company they manage. Often this team takes full control and ownership using their expertise to grow the company and drive...
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