Savior Plan


DEFINITION of 'Savior Plan'

When management and employees borrow money to invest in their failing company in an attempt to save it. Essentially, a savior plan precedes a management and employee buyout.


After a savior plan is put into place, one could say that the company is "employee-owned".
This type of plan can fail because of high borrowing costs, which may not be paid back quickly enough to obtain a return on the investment. Also, savior plans do not guarantee that the company will begin to operate efficienctly after the buyout.

  1. Management Buyout - MBO

    A transaction where a company’s management team purchases the ...
  2. Employee Buyout - EBO

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  3. Management And Employee Buyout ...

    A restructuring initiative that involves both managerial and ...
  4. Management Buy-In - MBI

    A corporate action in which an outside manager or management ...
  5. Private Company

    A company whose ownership is private. As a result, it does not ...
  6. Employee Stock Option - ESO

    A stock option granted to specified employees of a company. ESOs ...
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