2 min read
Definition
A management buy-in occurs when a management team from outside the business acquires it and steps in to run it, as opposed to a management buyout, where the existing team buys the company they already manage.
In plain terms
New managers buy their way in, rather than existing ones buying the business out. The funding challenge is similar; the risk profile differs because the buyers are new to the business.
Why it matters for your company
MBIs are funded much like buyouts — personal stake, debt against the business, deferred consideration. See funding a management buyout.
Related reading
Funding a management buyout
A management buyout (MBO) is the team that runs a business buying it from its current owners. Funding one…
Read →
Funding a Business Acquisition: A Director's Guide to Commercial Lending
Acquiring a competitor, a supplier or a complementary business requires a funding structure that matches both…
Read →
Equity vs debt finance: a director's guide
You can fund growth two ways: sell a slice of the company (equity) or borrow and repay (debt). Equity costs…
Read →Arrears in Business Lending: Meaning and Management
Arrears arise when scheduled loan payments are not made by their due date, placing the facility in a…
Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.