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            | Topic: | Business | 
        
            | Number of pages / Number of words: | 7 / 1842 | 
                
    
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LBOs result in the privatization of the company, and the shares are no longer traded publicly. When the managers of the company are the ones buying the company in this manner, it is called a management buyout, or MBO (Brealey et al., 2004, p. 590).
Divestitures
Another method of exercising management control is to divide a company into smaller logical units...
        
        
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590).
Divestitures
Another method of exercising management control is to divide a company into smaller logical units. By "spinning off" business units of the parent company, other business units are formed, and the shares of the new company are distributed to the shareholders of the parent company...
        
        
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