# Management buy-in (MBI)

An outsider buying into a company to run it, the buyout with a new face in charge.

The manager who buys in was not in the building, so the diligence risk the buyout escapes is all here: the books, the team and the customers are learned from outside, and the seller is trusting a resume. It is the European name for what this site calls a search, and its investors underwrite the person before the company, which is why the term shows up on backer pages and in continental deal records. A buy-in with the incumbent managers staying and taking a stake is a BIMBO, and the seat and the stake are negotiated together.

In numbers: An operator with fifteen years in logistics buys a $6,000,000 freight forwarder from its retiring founder: 20% equity from investors who back the operator, a [seller note](https://searchspheresource.com/glossary/seller-note) for 15%, and a bank loan for the rest, with the founder consulting for a year.

Source: https://searchspheresource.com/glossary/management-buy-in
Not dated: A definition is editorial: what a term means, why it matters, and an example. None of it reads a source that can go stale, so there is no date to take and a stamped one would be the build time wearing a costume.

Site index for machines: https://searchspheresource.com/llms.txt