Marvin is planning to sell his company to his management team. Marvin will be financing part of the purchase. This type of arrangement is a form of

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Marvin selling his company to his management team and financing part of the purchase is a form of leveraged buyout (LBO). In an LBO, the acquiring party (in this case, the management team) borrows a significant amount of money to fund the purchase, often with the assets of the acquired company as collateral. The seller (Marvin) can also finance part of the purchase, as in this case. ESOPs (A) are Employee Stock Ownership Plans, IPOs (B) are Initial Public Offerings, and PPOs (C) are Preferred Provider Organizations, none of which relates to this scenario.

Marvin Is Planning to Sell His Company to His Management