MBI - Management Buy In
A Management Buy In (MBI) - an external management team acquires a business.
Key considerations for MBIs are:
- High inherent risk, as incoming management will not be as familiar with the business as the incumbent management team.
- Traditionally more difficult to finance than MBOs because of the higher level of risk.
- Transaction costs can be higher because greater levels of Due Diligence may be required.
- MBI candidates need a proven track record of running businesses preferably in a relevant industry. The success of these deals can often be enhanced by leveraging off existing relationships between incoming management and existing or potential clients of the business.
- The purchase price of an MBI should reflect these higher risk factors.
We help MBI teams right from the start: identifying suitable targets, negotiating the right deal structure and arranging the financing with banks, high net worth individuals or Private Equity Houses. We project manage the transaction right through to completion. We have excellent relationships with many of Europe’s leading banks and other debt providers as well as with many Private Equity Houses. In many MBIs, our partners have invested their own funds alongside the management team. In some cases we have been asked to become Non Executive Directors. We understand the risks and we work with the management team to mitigate them.
Please contact us if you would like to discuss an MBI opportunity.
Other transactions we can help with include: