In a typical M&A transaction, the buyer is concerned about informational blind spots - financial, operational, and legal aspects of the target that its management and owners have much greater visibility into than the buyer, even after due diligence.

⏪ A management buyout (MBO) reverses this conventional information asymmetry: In an MBO, the management buyers typically know much more about the target and its prospects than its passive owner-investors. After all, the buyer group runs the day-to-day operations of the business.

❓ What does that mean for deal dynamics?