management buy in and buy out

What is a management buy in or out?

Both a management buy in (MBI) and a management buy out is a situation where the current ownership of the business changes. In the case of a MBI the current management team is replaced by an incoming team. Whereas, in a MBO the current management team raise the funds to take ownership of the business.  

Management buy out - more detail

Management buy-out financing, funds a transaction where a company’s existing management team purchases the assets and operations of the business. The benefit to the existing managers of completing a MBO is that they would be eligible for higher future financial rewards as owners of the business subject to the buy-out than they would be as employees. Management buy-out’s often take place to privatise a company allowing it to streamline it’s operations and increase profits.

Benefits of MBO's

MBO financing requires a tailored strategy, contact MC Commercial Finance today to find out how we can assist you and your business with this type of restructuring.

Management buy In - More Detail

Management buy-in (MBI) financing allows a manager or management team from outside of the target company to finance a take-over or ownership of a controlling stake of the business. This new manager/ management team replaces the existing management. MBI financing is usually used when the target company is poorly managed, requires succession or appears to be undervalued.

Benefits of MBI's

MBI financing requires a bespoke package, contact MC Commercial Finance today to find out how we can assist you.

Discuss MBI's or MBO's with us today