Management Buyout - MBO

What Does Management Buyout - MBO Mean?
When the managers and/or executives of a company purchase controlling interest in a company from existing shareholders.

Investopedia explains Management Buyout - MBO
In most cases, the management will buy out all the outstanding shareholders and then take the company private because it feels it has the expertise to grow the business better if it controls the ownership. Quite often, management will team up with a venture capitalist to acquire the business because it's a complicated process that requires significant capital.