Sometimes MBOs go wrong. Perhaps too high a price was paid, or the management team isn't up to the job. In such circumstances a RAMBO may be required.

A provision sometimes written into the financing of a transaction. It states that if the managers achieve certain performance targets, their share of the equity will increase.

The state of affairs when a receiver is appointed to recover debts of a company which has failed. In the case of a large company, with subsidiaries, the receiver may seek a buyer for a subsidiary. This often leads to a MBO, an MBI or a trade sale.

Bringing about fairly major changes in the organisation of a company by changing the management and/or the share ownership structure.

When a business in trouble is turned round and made viable by outside intervention.

When a small company takes over a large one, or when the company being taken over is likely to be the major element in the combined business.

Usually an intermediary who is co-ordinating the fundraising process.

The annual layout on an investment, expressed as a percentage of the current value not the original value.