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LSDefine

Simple English definitions for legal terms

management buyout

Read a random definition: Precatory Trust

A quick definition of management buyout:

A management buyout is when the people who work for a company buy the company from its current owners. This is called a buyout. The people who work for the company are called the management. So, a management buyout is when the management buys the company they work for.

A more thorough explanation:

A management buyout is a type of buyout where the current management team of a company purchases a controlling stake in the company from its current owners. This allows the management team to take control of the company and run it as they see fit.

Let's say that XYZ Corporation is currently owned by a group of investors who are looking to sell the company. The management team of XYZ Corporation, led by the CEO, decides to purchase a controlling stake in the company through a management buyout. They secure financing from a bank and other investors, and use the funds to buy out the current owners. Once the buyout is complete, the management team takes control of the company and begins running it independently.

This example illustrates how a management buyout can allow the current management team to take control of a company and run it independently. It also shows how financing from banks and other investors can be used to fund the buyout.

management | management company

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JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
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20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
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im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
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@SplitterusClitterus: me yesterday
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i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
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@JumpySubsequentDolphin: wait this is so cute, also where r u going
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JumpySubsequentDolphin
22:39
@splitty Oregon!
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JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
soyalmondoatmilk
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good morning! hoping waves will come our wave today
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