Explain the considerations for the financiers of mbo, Financial Management

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Considerations for the financiers of MBOs

Support of MBO will rely on various factors:

The reason for sale of business. Is it falling on hard times? Is group divesting to concentrate on core activities?

Forecasts profits and cash flows. Also future strategy and growth prospects

The calibre of management. Their keys skills and history of management.

The price of MBO and if it is reasonable

 


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