In today’s briefing:
- Background of the Increase in MBOs: Different from the Assumptions at the Time of the IPO
Background of the Increase in MBOs: Different from the Assumptions at the Time of the IPO
- The reason for increasing MBOs is due to difficulty for family-owned companies to transfer management control to descendants, rising % independent directors and tradable shares, alongside increased burdens of disclosures.
- It’s natural for the founding family to choose MBO when they believe that, as things stand, they cannot achieve their paramount mission of passing on management control to future generations.
- Considering the benefits gained from being listed, the investment has more than paid for itself. Therefore, founder-family companies prioritizing the transfer of management control to descendants will pursue MBOs.
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