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Explain the Advantagesand disadvantages of MBO
Advantages of MBO
Disadvantages of MBO
Sale can be arranged quickly
Management will be highly motivated which is in the best interest of the company.
Company will be well "looked after" as management will be sensitive to the staff needs, products and markets
Management may lack certain skills that the parent company had.
Managers aren't usually cash rich and so may have problems finding the money.
Gretz Tool Company is a large U.S based Multinational Corporation with subsidiaries in eight different countries. The parent of Gretz provided initial cash infusion to establish ea
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evaluate the importance of leverage in a small scale companyestion..
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