"Creditor" Managers: Experiences from MBO Deals in Hungary and Abroad

In order for managers to take an interest in privatization, it is essential that they also see their position assured after the change of ownership. The method of transfer of an enterprise known as "management buyout" makes it possible for the managers to become owners. But can transfers of enterprises organized by their managers really exist in Hungary as a special form of privatization? On the basis of Western experiences, the author shows that the "management buyout" does not simply mean that the managers buy an enterprise or portion thereof. It is a much more complicated system of many players, striving to balance out interests, and the conditions for its existence can probably also be created in our country.