Friday, July 11, 2008

'Feasibility criteria are important factors which determine whether an MBO is successful or not'

MBO: Management or `managed' buyouts?

"MBOs were traditionally considered high-risk transactions, but in India they have proven to be good for companies and are considered an attractive option by managements. Significant increases in revenues and profits have been witnessed in victims of MBOs - Phoenix Lamps, Nitrix, Intelenet to name a few in India," says Mr Rohit Kapur, Head-Corporate Finance, KPMG, India. Explaining to Business Line over the course of an email interaction, Mr Kapur feels MBOs are also becoming the preferred option for company managements.

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