A management buyout (MBO) is a financial transaction where a company's management team acquires a significant portion or all of the company from its current owners, typically through the use of leverage. This type of buyout allows the management team to take control of the company they are already running, often with the goal of improving performance and increasing its value. MBOs are usually financed with a combination of personal investments, bank loans, and sometimes private equity backing.
congrats on reading the definition of management buyout. now let's actually learn it.