What is ‘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.
Explaining ‘Savior Plan’
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.
Further Reading
- Blue growth: savior or ocean grabbing? – www.tandfonline.com [PDF]
- The sale and lease of public assets: fiscal savior or sacrilege? – journals.sagepub.com [PDF]
- The consumer financial protection bureau: Savior or menace – heinonline.org [PDF]
- From social control to financial economics: the linked ecologies of economics and business in twentieth century America – link.springer.com [PDF]
- The impact of growth, energy and financial development on the environment in China: a cointegration analysis – www.sciencedirect.com [PDF]
- Venture capital's role in financing innovation for economic growth – www.sciencedirect.com [PDF]
- The roles of financial asset market failure denial and the economic crisis: Reflections on accounting and financial theories and practices – www.sciencedirect.com [PDF]
