ABSTRACT
The study of management buy-outs can make a contribution to a number of major debates within the field of economics. The buy-out provides a distinct opportunity to examine evidence pertinent to a number of major issues in industrial economics and organisation theory. Entrepreneurship is a vital ingredient in the success of any firm and is an important part of the economy under-represented in conventional economic analysis. It is probably more evident, and more critical than ever, in the case of management buy-outs where the group of entrepreneurial manager or owners are striking out on their own account for the first time. The contribution to the firm of resource flexibility can be quite considerable. Whenever a company wishes to operate efficiently it must use all available assets optimally and thus must ensure that there is the minimum amount of 'down time' per unit of output.
