Steve Thompson and Michelle Haynes
The passing of control from ageing or infirm business owners to their senior employees or managers has no doubt always been a part of leadership succession and is probably as old as enterprise itself. However, the management buyout (MBO) – that is the transfer of enterprise ownership to a new, specially created company in which the existing senior managers are significant equity investors – became a recognized business format only in the late 1970s; although it spread rapidly thereafter. From those early beginnings onwards, the MBO was seen as a solution to a variety of problems. As shown in the following chapters in this part of this volume, these included ...