Employee Buyout - EBO

Dictionary Says

Definition of 'Employee Buyout - EBO'

A restructuring strategy in which employees buy a majority stake in their own firms. This form of buyout is often done by firms looking for an alternative to a leveraged buyout. Companies being sold can be either healthy companies or ones that are in significant financial distress.
Investopedia Says

Investopedia explains 'Employee Buyout - EBO'

For small firms, an employee buyout will often focus on the sale of the company's entire assets, while for larger firms, the buyout may be on a subsidiary or division of the company. The official way an employee buyout occurs is through an employee stock ownership plan (ESOP). The buyout is complete when the ESOP owns 51% or more of the company's common shares.

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Related Definitions

  1. Leveraged Buyout - LBO

    The acquisition ...
  2. Reverse Leveraged Buyout

    The offering of ...
  3. Buyout

    The purchase of ...
  4. Management Buyout - MBO

    An instance ...
  5. Employee Stock Ownership Plan - ESOP

    A qualified, ...
  6. Employee Stock Option - ESO

    A stock option ...
  7. Baptism by Fire

    A phrase ...
  8. Savior Plan

    When management ...
  9. Payroll

    The sum total of ...
  10. Minimum Wage

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