Management Buy-In's & Buy-Out's

A management buy-in (MBI) occurs when a manager or a management team from outside the company raises the necessary finance, buys the business, and becomes the company's new management. A management buy-in team often competes with other purchasers in the search for a suitable business. Usually, the team will be led by a manager with significant experience at Managing Director level. The difference to a management buy-out is in the position of the purchaser: in the case of a buy-out, they are already working for the company. In the case of a buy-in, however, the manager or management team is from an external source.

A Management Buyout (MBO) is a transaction where a company's existing management team acquires a significant portion or all of the business, usually from the current owner or parent company. It is a common exit strategy for business owners who want to transition ownership to trusted individuals already involved in running the business.

Buy-in management buyout (BIMBO) is a combination of a management buy-in and a management buyout. In the case of a buy-in management buy-out, the team that buy out the company are a combination of existing managers, who retain a stake in the company, and individuals from outside the company who will join the management team following the buy-out.