Buyouts by corporate staff in privatization processes: experiences in transition economies and considerations for their application in Latin America

Buyouts by corporate staff in privatization processes: experiences in transition economies and considerations for their application in Latin America

Abstract:

and experiences in the use of Buyouts by the staff of State-Owned-Entreprises that have been privatized in transition economies towards market
economies in order to consider their suitability in the context of Latin America, where there are different levels of economic liberalization, including privatization experiences over the last 30 years that have received intense criticism,
leading, in many cases, to events of reversion to the State of previously privatized enterprises with mixed results but where the use of Buyouts by their staff as privatization method has been unexplored, even though its popularity in other
regions, hence, the specific conditions in the Latam context for this kind of Buyout operations are explored to consider how to promoted their regional diffusion, ending with the different recommedations for that aim.

Keywords: Management Buyouts, Management- Employee Buyouts, Privatization, Latin America, Employee Stock Ownership Programs, Profit Sharing Programs.