management buy-out

cylon

Banned
Italian
What does this expression mean? A company which undergoes a management buy-out is bought buy whom? I found a translation which suggests that the company was bought by managers that formerly worked for the company itself. Is it necessarily so? I mean is that the actual meaning?
 
  • Sowka

    Forera und Moderatorin
    German, Northern Germany
    Hello :)

    "our" company underwent this process many, many years ago. There was a hostile attempt of another company to buy "us" (the suspicion/fear was that they were only interested in our patents etc).

    So our management bought the majority of the shares to prevent this hostile takeover. They were successful. There's also a Wiki article on that subject.
     
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