Management Buyout

Definitions

1. A transaction where the existing management team acquires ownership of the business, often with outside financing. It is more common in later-stage or private-company settings than in typical early venture outcomes.

   In plain English: A deal where the company's managers buy the business themselves.

   Example: "The founders explored a management buyout after strategic buyers undervalued the business."

Related Terms

• Exit
• Cap Table
• Dilution
• DeFi
• Drag Along
• Enterprise Value
• Holding Company
• IOI
• MBO