Klarinet Archive - Posting 000453.txt from 2005/06

From: "Simon Peerless" <s.peerless@-----.uk>
Subj: RE: [kl] Buffet-Crampon now independent
Date: Fri, 24 Jun 2005 04:22:54 -0400


Patricia Smith wrote:
> What exactly does "MBO" mean? Majority Buy Out? I'm not sure...I
knew
> I should have taken business courses in university, but I was too busy
> practicing to care. Some good it did.
>=20

MBO is Management Buy Out - the company is bought by a team from the
existing management, usually supported (as in this case, it appears) by
finance from a private equity finance fund. This seems good news as the
business will be run by people who understand it, and the needs of their
customers. But the equity finance fund will generally (I don't know any
details of this specific case) still be looking for a good return over a
relatively short period and so the pressure on the company to perform in
financial terms is likely to be high.

Simon Peerless

-------------------------------------------------------------------
Klarinet is a service of Woodwind.Org, Inc. http://www.woodwind.org