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The managing directors of management buy-outs

Over the last ten years, the number of management buy-outs (MBOs) and buy-ins (MBIs) have significantly increased through Europe. However, there are differences from country to country with regard to the level of activity and maturity of the MBO/MBI marketplace. 3i and Venturelab have jointly undertaken a pan-European study comparing two groups – those that have undertaken an MBO and those that could potentially undertake one – to investigate a series of issues, ranging from competitive outlook and environment to personal beliefs and practices.

Leadership has the largest impact on the success of the business, according to the study. Investors are focused on the search for opportunities with good management teams rather than viable business opportunities in abstract. In the case of MBOs, the issue of the management team becomes even more complex. Are there clear differences between successful business unit managers who choose to purchase the business they run and those successful business unit managers who choose to stay within the corporate structure?

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