Management Buy In

Definition of ‘Management Buy In’

A management buy in or MBI happens when an outside management team purchases a business and replaces the existing management team. The purchase is normally carried out using private equity finance

A management buy in is in contrast to a management buy out (MBO) where the purchaser is the existing management team.

As the management buy in team does not know the business, a buy in is normally regarded as more risky than a buy out, and is therefore a more time consuming and expensive transaction to undertake due to the extra due diligence involved.

For further information see the Wikipedia MBI definition.

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Management Buy In December 31st, 2015Team

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