A management buyout is a buyout of a firm or a piece of a firm by the firm’s own management. For example, Company A owns Company B, and the management of Company B decides to buy their own company from Company A – that’s when you get a management buyout.
Posts Tagged ‘leveraged buyout’
A Management Buyout is…
Monday, August 3rd, 2009A Leveraged Buyout is…
Sunday, August 2nd, 2009A leveraged buyout is the purchase of a controlling share of a company by using borrowed money. In other words, a leveraged buyout is when one company takes over another company and instead of paying for it in cash or equity, the purchased is paid for with debt (bonds or borrowed cash).