Institutional Buyout - IBO

Institutional Buyout - IBO
When an institutional investor, such as a private equity firm or a venture capitalist firm, acquires a controlling interest in a separate company. Institutional buyouts are the opposite of management buyouts (MBO), in which a business's current management acquires a large part of the company. Typically, the investor in an IBO will look to dispose of its stake in the company within a certain time frame.

An institutional buyout can also involve instances where a private equity firm acquires a company and keeps the current management or hires new managers and gives them stakes in the business. In general, the private equity firm involved in the IBO will take charge in structuring and exiting the deal as well as hiring managers.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • institutional buyout — /ˌɪnstɪtju:ʃ(ə)n(ə)l baɪaυt/ noun a takeover of a company by a financial institution, which backs a group of managers who will run it. Abbreviation IBO …   Dictionary of banking and finance

  • IBO — abbreviation institutional buyout …   Dictionary of banking and finance

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