This is an exit strategy when an entrepreneur sells his or her company to its managers

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Business

Tiara Aguilar

15 August, 03:10

This is an exit strategy when an entrepreneur sells his or her company to its managers

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Evan Odonnell · Answer 1

This is an exit strategy when an entrepreneur sells his or her company to its managers a management buyout. Management buyout, MBO, is defined as a transaction where a company's management team will purchase assets and operations within the business that they manage. The can purchase from within their organization or from other parent company's. This technique gives the person/company a shortcut to having more financial freedom.