Management Buyout: Management buyouts (MBOs) typically refer to leveraged buyouts led by the management of the company to be acquired. There are all sorts of circumstances that lead to this situation, including corporate sellers that are divesting a division or retiring entrepreneurs.
The appeal of such transactions to those who finance them is the continuity of management. The history of the company can more easily be leveraged to support the financing.
Managers vary in their appetite for MBOs. Some are enthusiastic about participating more fully in the rewards of ownership for the companies they lead; others are more realistic about the risks of ownership and the risks of negotiating to buy a business from their current employer--quite a juggling act.
You may also want to check the Investopedia definition, which deals with larger transactions.
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