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.
|