MBOs typically require the seller to take a limited amount of cash up front and a note for the balance of the purchase price over several years.

Question

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This statement is true. MBOs often involve a structure where the seller takes a limited amount of cash up front and a note for the remaining balance of the purchase price, which is paid over a period of several years. This allows the seller to receive some cash immediately while also providing the buyer with some financing flexibility.

MBOs Typically Require the Seller to Take a Limited Amount