Institutional Buyout - IBO

Dictionary Says

Definition of 'Institutional Buyout - IBO'

When an institutional investor, such as a private equity firm or a venture capitalist firm, acquires a controlling interest in a separate company. Institutional buyouts are the opposite of management buyouts (MBO), in which a business's current management acquires a large part of the company. Typically, the investor in an IBO will look to dispose of its stake in the company within a certain time frame.
Investopedia Says

Investopedia explains 'Institutional Buyout - IBO'

An institutional buyout can also involve instances where a private equity firm acquires a company and keeps the current management or hires new managers and gives them stakes in the business. In general, the private equity firm involved in the IBO will take charge in structuring and exiting the deal as well as hiring managers.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Buyout

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

    An instance ...
  3. Employee Buyout - EBO

    A restructuring ...
  4. Employee Stock Option - ESO

    A stock option ...
  5. Investment

    An asset or item ...
  6. Pooling Of Interests

    A method of ...
  7. Synergy

    The concept that ...
  8. Busted Takeover

    A highly ...
  9. Shark Watcher

    A firm ...
  10. War Chest

    A colloquial ...

Articles Of Interest

  1. Taking Advantage Of Corporate Decline

    A bankrupt company can provide great opportunities for savvy investors.
  2. Use Breakup Value To Find Undervalued Companies

    Find out a company's worth if it were sold in pieces - it may be more than you think.
  3. How The Big Boys Buy

    Learn what those in-the-know look for when acquiring a company.
  4. Finding The Best Buyer For Your Small Business

    Learn more about the process business owners go through to seal a merger or acquisition deal.
  5. Understanding Leveraged Buyouts

    LBOs are often presented as predatory by the media, but it really depends on which side of the deal you're on.
  6. Benckiser Buys More Of The Coffee Business (CBOU, SBUX, RBGPY, KRFT)

    Reimann family holding company is paying $340 million for Caribou Coffee, and paid $1 billion for Peet's in July. Is it looking to take on Starbucks?
  7. Understanding Pro-Forma Earnings

    These figures can either shed light on a company's performance or skew it. Find out why.
  8. The Advantages Of Investing In Aggressive Companies

    Often the most attractive companies are also a little fierce - learn how to spot healthy corporate aggression.
  9. 6 Decisions That Cost Companies Millions

    Here are some of the worst business decisions of all time, made across a broad range of sectors and industries.
  10. Find Equity Opportunities With Currency Moves

    Understanding the relationship between these markets can help you spot profitable stocks.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center