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A management buy-in (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/management team is from another source.

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 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. 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.

See also※

• Buyout
• Takeover
• Management buy-out
• Envy ratio

References※

• Definition of management buyin
• Definition of buy-in management buyout

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