All you need to know about MBI (Management Buy-in)

Management Buy-In (MBI ) is a type of private equity transaction that enables one or more company managers, or a group of managers, to acquire a company as owner and manager.

MBI generally works as follows: an acquirer seeks a company whose results can be improved by their expertise and know-how. Acquirers can bring financial and organizational resources to the business, and often new and appropriate skills.

Acquirers and investors can obtain the necessary financing for MBI through a private equity investor who provides the capital, sometimes in the form of loans or partnerships. Private investors can also help to secure additional financing through venture capital, equity or bank loans.

Acquirers are often experienced managers with a clear vision to modernize, restructure and relaunch a company. These managers are keen to improve the company's performance, and can often bring in new banking relationships and business contacts.

As part of the acquisition process, acquirers may seek legal advice to ensure that the acquisition is carried out in accordance with current rules and laws. In addition, private investors can help managers obtain financial advice and resolve any legal and tax issues related to the acquisition.

MBI is a common type of private equity and financing for entrepreneurs. By offering a group of investors both capital and advice, MBI is an excellent way to take control and manage a business.