Question

How is the exit choice (MBO, IPO etc) related to the investment choices (design of staging,...

How is the exit choice (MBO, IPO etc) related to the investment choices (design of staging, termsheet, monitoring etc)?

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Answer #1

Management Buyout is mainly done for the organisation where company is not performing well so in this case a new compnay aquire the target by taking over management of the target, it is an exit choice used by very not perfroming firm.

Initial public offer or IPO is one of the widely used exit option used by venture capital and private equity firm because this method gives maximum return and mainly used by the firms which are profitable and huge future potentials.

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