24. This form of sale has been employed in 36 cases, or 11 per cent of the disinve+ments reported for South Africa. The normal process of a menagement buy-out is for the new management to raise 8 ioan frm an investment bank, usually with the assietance of the parent company, and then to use it to purchaee a controlling intereet in the subsidiary. In South Africa, however, the practice bae often been for the dieinvesting companies themselvee to carry out the teek of raising funds and settling deals. The arrangement suite them since it ellowe bueiaees to be conducted a8 usual by a meaageroent team that they know and trust. The “ex-subeidiery” then paya royalties or licence feee for the we of the parents’ technology and proceasee, in addition to the purchase price. A management buy-out team is more dependent on the parent company for technology, patents and supplies than would be a third-party buyer. Tbia dependence in attractive es it offers better prospects of a long-term relationship with the new company based on the proviaiona covered in the agreements. The big disinveetmento, including General Electric, General Motors and International Buoineee Machines of the United State8 and the Rover Group of the United Kingdom, have involved 6alea to local maaagem8ut. General Motors wee sold to its local management on temm which required an edjunction of R 100 million from the parent company. end the sub&diary was sold to local management under the direction of an American former executive of General Motors. It ia widely aeeumed that the contract, none of the details of which are known, includes e buy-back clawe which would allow the parent to return openly wheu circumetencee permit. 25. In a truet arrangement, the departing company transfers ite aeeete to the specially created tru8t, which pays, for these aseets out of future company 
**Analysis**
The text appears to be discussing a specific type of business transaction, namely management buy-outs, and its application in the South African market. The text mentions companies such as General Electric, General Motors, and International Business Machines, which suggests a focus on industry and corporate activity.

**Category**
Industry