• A management buyout is a transaction in which the management of a company buys the assets and operations of the business they manage.

  • Typically, MBOs privatize companies to streamline operations and increase profitability.
  • The management team pools resources to acquire all or part of the business they manage.
  • MBOs are funded by a combination of personal resources, private investors and vendor funding.
  • A management buyout is the opposite of a management buyout, where an outside management team acquires a company and replaces existing management.