Exit Glossary
Tuesday, June 8, 2010 10:31Trade sale / Sale to another company or individuals
Where the company is sold to a competitor or other firm.
MBO / Management Buy-Out
Where the incumbent management team takes over the business.
MBI / Management Buy-In
An outside team of managers invests in the business, often with institutional backing.
VIMBO / Vendor initiated Management Buy-Out
A management buy-out initiated by the vendors.
BIMBO – management buy=in management buy-out
A combination of outside managers and current employees buying the business.
AIM – flotation of a company on the Alternative Investment Market
A form of public listing, which is generally less onerous and expensive than a full listing, providing the owner-manager with an opportunity to sell some or all of their shares.
Cash-oiut
Taking cash out of a company through bank loans or other means. The shareholders borrow money against the value of the business, without selling any shares.
Earn-out
A provision written into a transaction that states that the vendors will receive further payment if the business they have sold achieves specified eprformance levels. This normally involves the vendors continuing to work in the business.
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