A management buyout, or MBO, is the acquisition of your business by its senior management team, who participate as significant equity partners in the deal. Because management often lacks the capital to buy you out, you frequently become the bank, financing the sale through a note paid back over time with interest, though the deal can also be structured to place debt on the company or combined with an ESOP to broaden ownership. The advantages are compelling: your company's culture continues and strengthens as employees gain equity, you gain flexibility in price and deal structure, confidentiality is better maintained, and your personal guarantees are typically removed. The trade-offs are equally important to weigh, however, since management may lack the capital or credit to complete the sale, good employees do not always make good owners, and the tax burden on an internal buyout can be substantial.