Management buy-in

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A management buyin (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 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.

Some of the private equity groups and executive search firms that focus on management buy-ins are GTCR Golder Rauner ([1]), Frontenac Company ([2]), and Pinnacle CEO Recruiters ([3]).