Management buyout

purchase of company by existing managers

Management buyout is when a company's managers buy a large part or all of a company. They may buy from private owners or from a parent company.

Management and leveraged buyouts were a phenomenon of the 1980s. Leveraged buyouts use borrowed money.[1]

The venture capital industry has played a crucial role in the development of buyouts in Europe, especially in smaller deals in the UK, the Netherlands, and France.

References

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  1. Simkovic, Michael 2011. Leveraged buyout bankruptcies. Columbia Business Law Review (1): 118.