Management Buy-In - MBI

A corporate action in which an outside manager or management team purchases an ownership stake in the first company and replaces the existing management team. This type of action can occur due to a company appearing undervalued or having a poor management team.

There are a wide range of management teams, such as hedge funds and other companies, that look for undervalued companies to purchase. If they find a company that fits with their investment criteria, they will often purchase the company and make it private to unlock the value. More often than not, they replace the management team with their own, which they feel will do a better job at running the company.


Investment dictionary. . 2012.

Look at other dictionaries:

  • management buy-in — noun The purchase of a controlling share in a company by an outside management with support from banks, etc • • • Main Entry: ↑manage …   Useful english dictionary

  • management buy-in — /mænədʒmənt ˈbaɪ ɪn/ (say manuhjmuhnt buy in) noun the employment of an external management team to run a business or organisation …   Australian English dictionary

  • management buy-in — The acquisition of a company by an outside team of managers, usually specially formed for the purpose, often backed by a venture capital organization. Their normal target is the small family owned company, which the owners wish to sell, or… …   Big dictionary of business and management

  • buy in management buy out — (BIMBO) A transaction where both incoming and existing management are involved in the acquiring group. Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 …   Law dictionary

  • management buy out — management buyout (MBO) Acquisition of a company by the management team supported by venture capital investment and/or bank debt financing. Related links public to private transaction …   Law dictionary

  • Management buy-out — Le management buy out, abrégé en MBO, consiste dans le rachat d une entreprise par ses dirigeants ou ses salariés. Notes et références Voir aussi Articles connexes Capital investissement Leveraged buy in Leveraged buy out …   Wikipédia en Français

  • Management-Buy-out — Ma|nage|ment Buy out 〈[mæ̣nıdʒməntbaıaʊt] m. od. n.; Gen.: s, Pl.: s; Wirtsch.〉 Aufkauf einer Firma bzw.von Firmenanteilen durch das eigene Management; Syn. Buy out [Etym.: <engl. management buy out; zu buy out »aufkaufen«] …   Lexikalische Deutsches Wörterbuch

  • management buy-out — MBO The acquisition of a company or a subsidiary by the existing management. It is frequently used as a means of divestment by companies seeking to focus on their core activities. The new owner managers of the buy out frequently improve its… …   Big dictionary of business and management

  • Management-Buy-out — Ma|nage|ment Buy out [...bai aut] das; s, s <zu engl. to buy out »aufkaufen«> Übernahme eines Unternehmens durch die eigene Geschäftsleitung; Abk.: MBO …   Das große Fremdwörterbuch

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

  • management buy-out — Gen Mgt the purchase of an existing business by an individual manager or management group from within that business. Abbr. MBO …   The ultimate business dictionary

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