MANAGEMENT BUY-IN (MBI)

A Management Buy-In is when a business is sold to an outside management team.

An MBI usually occurs when:

• The business is underperforming and would benefit from additional management input
• The MBI team have specific sector knowledge and can take the business forward

MBI's are traditionally more difficult to fund than MBO's. The lenders have to be convinced that the MBI team (or MBI candidate) have a sufficient experience and the ability to deliver.

An MBI candidate would typically have to have the following attributes:

• Proven successful business background
• Business leader with drive and enthusiasm
• Able to risk personal capital

With access to many innovate and aggressive debt finance providers, many MBI's have been funded without the need for Venture Capital.