Explain the advantagesand disadvantages of mbo, Financial Management

Assignment Help:

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.


Related Discussions:- Explain the advantagesand disadvantages of mbo

Determination of explicit cost of capital, Determination of explicit cost o...

Determination of explicit cost of capital Approach of determination of explicit cost of capital is similar to the one used to ascertain IRR, with one difference, in case of co

Define the term- franchise, Franchise (licensing) - Granting or licensi...

Franchise (licensing) - Granting or licensing of the right to use systems, expertise,brandsknow how etc. to another  organisation,  generally in  return  for  a  profit  share

Sollution the problem, VK Ltd a multi-product Company, furnishes you the fo...

VK Ltd a multi-product Company, furnishes you the following data relating to theyear 2000.First Half of the year Second Half of the yearSales Rs. 45,000 Rs. 50,000 Total Cost Rs. 4

Capital Strructure., What is the rational for having different types of sec...

What is the rational for having different types of security

Example of relationship between bond price and time, Illustration    ...

Illustration      Discount bond (5 yr. bond with 10% coupon) (expected rate yield at 12%) Premium bo

Does high operating leverage always mean high business risk, Does high oper...

Does high operating leverage always mean high business risk?  Explain. High operating leverage doesn't always mean high business risk.  If the company's sales are quite steady

Explain the factors that are responsible for recent surge, What factors are...

What factors are responsible for the recent surge in international portfolio investment (IPI)? Answer:  The recent surge in international portfolio investments denotes the global

What are the reasons for mergers and acquisitions, Reasons for mergers an...

Reasons for mergers and acquisitions The key reasons for mergers and acquisitions, is to maximise shareholder wealth otherwise it wouldn’t be worthwhile. R

Capital structure, Modi Wires and Cable Ltd intends to finance its INR 20 m...

Modi Wires and Cable Ltd intends to finance its INR 20 million modernization plan for which it is trying to decide between debt and external equity. The management feels that the e

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd