A management buy-in (MBI) is a type of take-over whereby a company or business unit is taken over by managers from outside the company. Contrary to an MBO, the management that takes over is therefore not already employed with the company.
An MBI often has a more complex transaction financing, and the new owners are mostly supported by external financers. In some cases, the selling shareholder will provide part of the transaction financing as well.
In view of the normally limited solvency and limited sureties, the financing heavily rests on the expected future cash-flow. It is also not unusual that an earn-out is agreed upon. Thereby the payment of part of the purchase price is postponed (and this often depends on future performances).
We can help you with the business plan, the valuation, the financing and/or with the coordination of the deal. We have acquired experience in both several successful MBOs and MBIs, and in various non-successful attempts. Therefore we are well-capable to guide you through such course.
If you orient yourself on a management buy-in, as seller or intended shareholder, we will be happy to make time for an orienting introductory meeting.
