Buyout


A buyout is an investment transaction whereby a company is largely acquired by a group of managers (usually defined as management teams) who become managers / entrepreneurs.

The purchasing manager team is usually flanked by a financial sponsor, traditionally a private equity fund, which provides much of the financial resources for the operation. Purchase transactions are classified according to the management team's origin:

If leverage management buyout (LBO or LMBO) is used in the MBO / MBI operation as a leveraged financial leverage, Voices correlateemodify wikitesto

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