Buy-In Management Buyout - BIMBO

A form of a buyout that incorporates characteristics of both a management buyout and a management buy-in. A BIMBO occurs when existing management - along with outside managers - decides to buyout a company. The existing management represents the buyout portion while the outside managers represent the buy-in portion.

This option provides the best of both worlds of a buy-in and a buyout. For one thing, you can expect that the transfer will be made much more efficiently, because the existing members of management are already familiar with the business that is taking over. The management buy-in most likely will bring in outside individuals with a certain expertise lacking in the organization and will benefit the firm greatly.

However, a BIMBO may not be so perfect. Tension may arise between the firm's employees and new members of management. If the employees feel threatened by the new management, the firm's performance may decline.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Management buyout — A management buyout (MBO) is a form of acquisition where a company s existing managers acquire a large part or all of the company. Contents 1 Overview 2 Purpose 3 Financing 3.1 Debt Financing …   Wikipedia

  • management buyout — noun The purchase, by its management, of the majority of the shares in a company, esp when an outside takeover is imminent • • • Main Entry: ↑manage * * * management buyout UK US noun [countable] [singular management buyout …   Useful english dictionary

  • management buyout — n when a company s managers buy the company they work for …   Dictionary of contemporary English

  • management buyout — noun count a business deal in which the managers of a company buy all or the majority of its STOCK so that they own the company …   Usage of the words and phrases in modern English

  • management buyout — ( MBO) leveraged buyout whereby the acquiring group is led by the firm s management. Bloomberg Financial Dictionary See buyout * * * management buyout management buyout ➔ buyout * * *    ► See …   Financial and business terms

  • management buyout — UK / US noun [countable] Word forms management buyout : singular management buyout plural management buyouts business a business deal in which the managers of a company buy all or the majority of its shares so that they own the company …   English dictionary

  • Management-Buyout — Ma|nage|ment Buy|out auch: Ma|nage|ment Buy out 〈[mæ̣nıdʒməntbaıaʊt] m. od. n.; s; unz.; Wirtsch.〉 Aufkauf einer Firma bzw. Kauf von Firmenanteilen durch das eigene Management; Sy 〈kurz〉 Buy out [<engl. management buy out; zu buy out… …   Universal-Lexikon

  • Management Buyout - MBO — When the managers and/or executives of a company purchase controlling interest in a company from existing shareholders. In most cases, the management will buy out all the outstanding shareholders and then take the company private because it feels …   Investment dictionary

  • Management-Buyout — D✓Ma|nage|ment Buy out, Ma|nage|ment Buy|out (Übernahme einer Firma durch die eigene Geschäftsleitung) …   Die deutsche Rechtschreibung

  • management buyout — /mænədʒmənt ˈbaɪaʊt/ (say manuhjmuhnt buyowt) noun the purchase of a company by its own company managers. Also, management buy out, MBO …   Australian English dictionary

  • management buy-out — A transaction where a company is bought by its existing managers from the person, family or company which owns it. Usually this involves their raising development capital for a new company which is then used to buy the target company. Compare… …   Law dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.