| Management Buyout |
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A classic example of an MBO involved Springfield Remanufacturing Corporation , a former plant in Springfield, Missouri owned by Navistar (at that time, International Harvester) which was in danger of being closed or sold to outside parties until its managers purchased the company. The goals of such a buyout may be to strengthen the managers' interest in the success of the company, or just as often to save their jobs (the plant may have been scheduled for simple closure, or an outside purchaser may bring in its own management team, leaving the prior managers unemployed). In most cases, the management will then take the company private. MBOs have assumed an important role in the corporate restructurings besides Merger s and acquisitions. The key considerations are the fairness to Shareholder s, the price, the future Business Plan , and Legal and Tax issues. SEE ALSO EXTERNAL LINKS
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