The number of management buyouts in 2005 hit a record 67, surpassing the previous high of 43 in 2004, merger and acquisitions concern Recof Corp. said Friday.
The MBOs had a total value of 297.5 billion yen, also an all-time high and up from the previous record of 144.2 billion yen set in 2003.
In an MBO, management of a company purchases a controlling stake in the firm, usually all outstanding shares, from stockholders. Management then often takes the company private to shield it from hostile takeover bids.
MBOs are increasing in Japan as a growing number of companies look for ways to discourage unfriendly takeovers, while more investment funds are more willing to finance MBOs, Recof said.
The 67 MBOs last year involved many large-scale transactions, including a 218.5 billion yen buyout at apparel maker World Co.