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
A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especially ...
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.
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
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Buyout
In finance, a buyout is an investment transaction by which the ownership equity of a company, or a majority share of the stock of the company is acquired. The acquiror thereby "buys out" the present equity holders of the target company. A buyout ...
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Takeover
In business, a takeover is the purchase of one company (the ''target'') by another (the ''acquirer'' or ''bidder''). In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to t ...
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Management buy-out
A management buyout (MBO) is a form of acquisition in which a company's existing managers acquire a large part, or all, of the company, whether from a parent company or individual. Management-, and/or leveraged buyout became noted phenomena of 1 ...
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Envy ratio
Envy ratio, in finance, is the ratio of the price paid by investors to that paid by the management team for their respective shares of the equity. It is used to consider an opportunity for a management buyout. Managers are often allowed to invest ...
References
Definition of ''management buyin''Definition of ''buy-in management buyout''
Corporate finance
Management
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