What is ‘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.
Explaining ‘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.
Further Reading
- Management buyouts and human resource management – onlinelibrary.wiley.com [PDF]
- Post–Privatization Effects of Management and Employee Buy–outs – onlinelibrary.wiley.com [PDF]
- Non‐standard methods in the privatization strategies of the Czech Republic, Hungary and Poland – onlinelibrary.wiley.com [PDF]
- Employees' attitudes towards employee ownership and financial participation in Croatia: Experiences and cases – link.springer.com [PDF]
- Early privatization in Romania: The period of management and employee buyouts, 1991 to 1995 – www.tandfonline.com [PDF]
- Firm rebirth: Buyouts as facilitators of strategic growth and entrepreneurship – journals.aom.org [PDF]
- The impact of private equity and buyouts on employment, remuneration and other HRM practices – journals.sagepub.com [PDF]
