2 min read
Definition
A management buyout (MBO) is a transaction where a company's existing management team buys the business, usually funded by a mix of their own equity, debt and sometimes seller financing.
In plain terms
The people already running the company buy it from its current owners. It is a common exit for retiring founders and a route for managers to own what they run.
Why it matters for your company
MBOs need careful funding structures, and finance is central to making them work. Understanding the mix of debt and equity — and the cash flow needed to service it — is essential. See funding a management buyout.
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.