Management And Employee Buyout - MEBO
Definition of 'Management And Employee Buyout - MEBO'A restructuring initiative that involves both managerial and non-managerial employees buying out a firm in order to concentrate ownership into a small group from a widely dispersed group of shareholders. |
|
Investopedia explains 'Management And Employee Buyout - MEBO'MEBOs are generally used to privatize a publicly traded company, but can also be used as an exit strategy for venture capitalists or other shareholders in an already private firm. MEBOs can often be seen as bringing greater efficiency to a firm's production because it can provide added job security to employees, which motivates them to give a stronger effort to improve company profitability. |
Related Definitions
Articles Of Interest
-
What Are Corporate Actions?
Be a savvy investor - learn how corporate actions affect you as a shareholder. -
Mergers & Acquisitions: An Avenue For Profitable Trades
When major corporate transactions have a big impact on the currency markets, you can benefit. -
The Basics Of Mergers And Acquisitions
Learn what corporate restructuring is, why companies do it and why it sometimes doesn't work. -
What Is Private Equity?
This investment vehicle attracts wealthy investors to increase the value of portfolio companies. -
War's Influence On Wall Street
Blitzkrieg? Dawn raids? Sounds like the markets and the battlefield have a few things in common. -
Pay Attention To The Proxy Statement
Don't overlook this overview of a company's well-being. -
Lessons On Corporate Dividend Payout And Retention Ratio
Why are dividend payout and retention ratios important to consider when investing in company stock? What companies have high ratios?What constitutes a high dividend payout and retention ratio? ... -
Conglomerates: Cash Cows Or Corporate Chaos?
Huge companies may not be as infallible as previously assumed. Find out why bigger isn't always better. -
Cashing In On Corporate Restructuring
Companies use M&As and spinoffs to boost profits - learn how you can do the same. -
Why Companies Stay Private
Many private companies prefer to stay private and find alternate sources of capital. Find out what firms have to gain by eschewing the windfall from a flashy IPO.
Free Annual Reports