How to Structure a Management Buyout with Debt Pushdown Strategy

How to Structure a Management Buyout with Debt Pushdown Strategy Management Buyouts (MBOs) are one of the most strategic paths for transitioning business ownership while retaining internal leadership continuity. When combined with a well-executed debt pushdown strategy, MBOs can also deliver substantial tax and financial efficiency benefits—if done right. This post walks you through the essentials of structuring an MBO using debt pushdown, from legal formation to risk containment. 📌 Table of Contents What Is a Management Buyout? Understanding Debt Pushdown Step-by-Step MBO with Debt Pushdown Tax and Legal Implications Best Practices for Deal Execution What Is a Management Buyout? An MBO is a transaction in which a company’s existing management team acquires all or part of the company from its current owners. It’s a preferred method in privately held companies, family-owned firms, or divisions of large conglomerates being spun off. Managers oft...