Ashfords Solicitors - Management Buy Out (MBO)

Management Buy Out (MBO)

Management Buy Out is the term used to describe the sale of a business (either shares or assets) to the existing management team of that business. This often happens when an owner-manager wants to retire from the business and has management colleagues in a position to buy the business and take it forward.

This has a number of key advantages. The existing management will know the staff, have certain expert knowledge required to run the business and also understand how the business operates. It also means that the seller is not forced to sell to a competitor.