Skip to content
Dictionary by pitch.dog
Exits, liquidity & investor returns · Working

Management buyout

Also called: MBO

ELI5

Managers buy the company they run.

Used in conversation

“The management buyout requires debt and sponsor capital.”

Definition

An acquisition of a business by its existing management team, usually with external financing.

Here “Management buyout” means: An acquisition of a business by its existing management team, usually with external financing.

Pitch context

You will see “Management buyout” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches exits, liquidity & investor returns.

Why it matters: In exits, liquidity & investor returns, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Connected terms

When the words have to travel

Need an investor or company deck?

Bring the business, the evidence or the half-formed ask. We help it travel beyond the spreadsheet.

See how pitch.dog can help
Sources & evidence · 6

Direct term-level sources and supporting source families.