Savior Plan

What is ‘Savior Plan’

When management and employees borrow money to invest in their failing company in an attempt to save it. Essentially, a savior plan precedes a management and employee buyout.

Explaining ‘Savior Plan’

After a savior plan is put into place, one could say that the company is “employee-owned”.
This type of plan can fail because of high borrowing costs, which may not be paid back quickly enough to obtain a return on the investment. Also, savior plans do not guarantee that the company will begin to operate efficienctly after the buyout.

Further Reading

  • Blue growth: savior or ocean grabbing? – [PDF]
  • The sale and lease of public assets: fiscal savior or sacrilege? – [PDF]
  • The consumer financial protection bureau: Savior or menace – [PDF]
  • From social control to financial economics: the linked ecologies of economics and business in twentieth century America – [PDF]
  • The impact of growth, energy and financial development on the environment in China: a cointegration analysis – [PDF]
  • Venture capital's role in financing innovation for economic growth – [PDF]
  • The roles of financial asset market failure denial and the economic crisis: Reflections on accounting and financial theories and practices – [PDF]