Management-Buy-In

A management buy-in (MBI) is a process in which a company is taken over by an external management team or the takeover is accelerated by an external management team with the help of an investor. This usually happens when an external management team believes that the company is poorly managed and could be more efficient through better management. An MBI is also a way of taking over a company as part of a succession solution.

There is also a variant called a buy-in management buy-out (BIMBO), where the team that buys the business is a combination of existing managers who retain a stake in the business and people from outside the business who join the management team after the buy-out.

It is important to note that an MBI is a complex transaction that requires careful planning and execution. It can also involve risks, including the possibility that the new management team may struggle to run the business effectively.