search query: @author Pogue, M. / total: 3
reference: 2 / 3
| Author: | Pogue, M. |
| Title: | Financing the MBO: a complex issue? |
| Journal: | Management Decision
1991 : VOL. 29:2, p. 58-62 |
| Index terms: | MANAGEMENT BUY-OUTS CORPORATE FINANCE |
| Language: | eng |
| Abstract: | It has become increasingly obvious from recent experience that two vital and interrelated factors affecting the eventual success of a management buy-out (MBO) are respectively the purchase price and the consideration used for the transfer of ownership. The types of finance which have become associated with MBOs together with the categories of financial institution involved in providing the finance are examined. The levels of debt in UK buy-outs, as measured by the debt/equity ratio, are considerably below the levels typical in the USA. However, an increasing dependence on debt finance is demonstrated. The cash-flow advantages of payment-in-kind securities are shown. The racket mechanism is described. |
SCIMA