The term management Buy Out (MBO) designates the assumption of an enterprise or a part of it by the past management by acquisition. For the Federal association of the equity investment companies (BVK) the management for a MBO needs at least 10 % of the enterprise portions. It can concern thereby e.g. enterprises, which are economically fastened and whose past owners do not want to finance the enterprise any longer. In this case one speaks of a reorganization MBO. If the financing is essentially made by outside capital, then one can speak of a Leveraged management Buyout.

Usually MBOs take place not only from the private possession of the management, but with help of a bank or other financial investors. An important financing instrument represents thereby private Equity. With a MBO the principle aluminum agent conflict is more or less dissolved, since after a MBO a unit of management and property is present. The MBO worked in particular when enterprise following. With the MBO of a corporation it is usual to denationalize the corporation in this case speaks one of a privatisation MBO. This gives the possibility to the management of developing the enterprise independently of obligations of the stock market.

In the case missing inheriting it is often more pleasant the old owner, if they can hand their enterprise over at them well-known of many years persons. In addition a founded economical know-how is necessary for the line of an enterprise. That together leads to the fact that the old owners often offer their enterprise to the own managers for the purchase, since they can trust them both and judge their commercial fate. A further advantage is that one not all enterprise documents strange buyers, e.g. Competitors, to the opinion to submit must and the risk runs to be in this way spied.

With economic inclinations is it usually like that that employee can estimate the management the situation of the enterprise clearly better than external investors or Sanierer. Therefore they are usually rather ready in these cases to reorganize and afterwards continue the enterprise.

There the assumption of an enterprise ith D." R. a high capital commitment dependent on the business size required, are to be found management Buy Out transactions almost exclusively with small and middle enterprises.

See also

• Management Buy in (MBI)
• Institutional Buy Out (IBO)
• Leveraged Buyout (LBO)
• Private Equity

Related links

• bmwi softwarepaket.de - MBO - explanation of the terms

Articles in category "Management Buy Out"

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Related Websites

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