Management buy-in
A management buyin (MBI) occurs when a manager or a management team from outside the company raises the necessary finance, buys it, 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 another source.
Management buyins represent only a small number of all buyouts. Among the private equity groups that do management buyouts are GTCR Golder Rauner, Frontenac Company, and Wind Point Partners.
Buy-in Management Buyout (BIMBO)
A buy-in management buyout is a combination of a management buy-in and a management buyout. In the case of a buy-in management buyout, the team that buyout the company are a combination of existing managers and individuals from outside the company who will join the management team following the buyout. The term BIMBO was first used in respect of the purchase of Chaucer Foods, a Hull based crouton manufacturer, from Hazlewood Foods plc in 1990.
External links
- Definition of management buyin
- Definition of management buyout
- Definition of buy-in management buyout
See also
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