What Is A Management Buyout (MBO)?

Manu Lakshmanan

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Manu Lakshmanan WSO Editorial Board

Expertise: Consulting | Other

A Management Buyout (MBO) is a corporate action taken by the management of a firm, where they buy all the available shares in their own company in order to take the company private. This is done because the management feels it can improve the firm but that the actions they take may not be approved by existing shareholders, so they take full control to do what they think needs to be done, frequently teaming up with a private equity or venture capital firm in the process.

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Manu Lakshmanan

Manu Lakshmanan is a member of WSO Editorial Board which helps ensure the accuracy of content across top articles on Wall Street Oasis. Prior to accepting a position as the Director of Operations Strategy at DJO Global, Manu was a management consultant with McKinsey & Company in Houston. He served clients, including presenting directly to C-level executives, in digital, strategy, M&A, and operations projects. Manu holds a PHD in Biomedical Engineering from Duke University and a BA in Physics from Cornell University. This content was originally created by member WallStreetOasis.com and has evolved with the help of our mentors.