# Management Buyout

*Corporate Finance & M&A — Finicade finance glossary*

A management buyout is the existing management team buying the company they run, usually backed by a private equity sponsor. The structural conflict is unavoidable: the people negotiating the price know the business better than the board selling it, and have an interest in a low valuation. Independent committees and fairness opinions exist to manage exactly this, with mixed success.

**Also known as:** MBO, management buy-in, MBI

**Related terms:** [Leveraged Buyout (LBO)](https://finicade.com/glossary/lbo), [Private Equity](https://finicade.com/glossary/private-equity), [Conflict of Interest](https://finicade.com/glossary/conflict-of-interest), [Sponsor](https://finicade.com/glossary/sponsor), [Due Diligence](https://finicade.com/glossary/due-diligence)

Source: https://finicade.com/glossary/management-buyout