in sep /dec q1 2015 cigno co
examiner wrote in the reports that student got confused between mangement buy in and buy out while answering part a of the question ?
can i know the difference between these two terms ?
and also while answering part d of the question, what is the difference between mandatory-bid condition through sell out rights and squeeze-out rights, they both appear to be similar when taking about the remaining or minority shareholders in the model answer
thanks
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management buy in vs buy out
A management buy-out is where the existing management take over the company. A management buy-in is where management from elsewhere buy the company.
Squeeze out is where the majority shareholder forces the minority to sell their shares to them. Sell-out is where the minority shareholders can oblige the majority to buy their shares off them.
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