Management Buy-In

Short description: Of a large interest in a company

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.^[1] 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.

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.^[1] 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.^{[citation needed]}

References

↑ ^1.0 ^1.1 "Passport to Riches". growthbusiness.co.uk. July 1, 2004. http://www.growthbusiness.co.uk/growing-a-business/exit-strategies/226/passport-to-riches.thtml. Retrieved 5 August 2012.

Definition of management buyin
Definition of buy-in management buyout

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Original source: https://en.wikipedia.org/wiki/Management buy-in. Read more

[gb-1] 1.0 ^1.1 "Passport to Riches". growthbusiness.co.uk. July 1, 2004. http://www.growthbusiness.co.uk/growing-a-business/exit-strategies/226/passport-to-riches.thtml. Retrieved 5 August 2012.

Buyout	Financial sponsor Management buyout Divisional buyout Buy–sell agreement Leveraged recapitalization Dividend recapitalization
Venture	Angel investor Business incubator Post-money valuation Pre-money valuation Seed money Startup company Venture capital financing Venture debt Venture round
Structure	Private equity firms and funds Limited partnership Limited liability company Carried interest Management fee Publicly traded private equity Business Development Company Venture capital trust Private investment in public equity (PIPE) Pledge fund

Management Buy-In

Buy-in management buyout (BIMBO)

See also

References