article thumbnail

Planning a successful MBO?

Strategy Driven

The terms Management Buyout (MBO) and Management Buy-In (MBI) can seem confusing since they sound similar. For this reason, management looking to buy the firm will connect with investors, banks, private equity firms, and possibly mezzanine lenders. A MBO is a long process, which typically takes many years to complete.

MBO 132
article thumbnail

Entrepreneurs Need a Better Way to Cash Out

Harvard Business Review

For as long as it has been an industry, these have been the only two ways for a venture capital-backed company to succeed. But analysts are judging EBITDA, P/E ratios, quarterly growth, and cashflows – which don’t always correlate with long-term value creation. There has to be a better way. It is incredibly hard to hold an IPO.