Management Buy-in (MBI)

A management buy-in (MBI) occurs when an external management team that has not previously worked at the company acquires the business and takes over its management. In contrast to a management buy-out (MBO), in which the existing management buys, the MBI manager brings fresh industry or leadership expertise from outside.

The MBI is an established route to company succession, especially when no suitable successor is available within the family or the existing team. The acquisition is often structured through a combination of the manager's equity, investment capital from an investor and debt financing – frequently in the form of a leveraged buy-out. A vendor loan can also close the financing gap.

For the seller, the careful selection of the incoming management is decisive, as its suitability shapes the company's continued existence. In our M&A advisory, we support both selling shareholders and MBI candidates and, through sound sale preparation, create a robust basis for the transaction.