Would you consider the following are logical reasons for a management team to initiate an MBO?
Considering a scenario where a Group was bought by a company, the management team of one of the Group's subsidiaries wanted to initiate an MBO, because of the following reasons:
- They will have better control of the future business operation (True, but could they not negotiate with the buyer regarding the governance and incentives before initiating the MBO?)
- The buyer is busy to close the transaction and cannot get hold of them to discuss the plan (True, but surely this is not a reason to initiate an MBO right?)
- The buyer is a competitor of the Group and don't want to be under their control (The management team's 3 years business plan is to generate Ebitda that is equivalent as much as 30% - 50% of buyer's today Ebitda, would the buyer not consider to keep the management team?)
The reasons above don't quite make sense to me, does anybody have other thought? Thank you very much for your time!
Est minima aut expedita vel. Voluptatem aliquid accusantium voluptas laborum fugit corrupti. A ea et qui ullam et consequatur soluta. Repellat voluptas dolor optio magnam quae sapiente. Perferendis expedita voluptate modi aut dolor reiciendis. Aspernatur quis quisquam odit officia veniam adipisci laborum. Dignissimos non aut et eos.
Quasi quo itaque quos sit accusamus mollitia quasi. Tempora sequi deserunt autem alias. Vitae molestiae adipisci est. Et nostrum voluptatem vitae inventore ut aut.
Esse quisquam sunt voluptatem. Repellendus dicta minus eum iusto a est dolor. Pariatur sequi dolore fugit corrupti neque omnis et quo.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...