Management buy-in candidates should have past experience of successfully managing businesses.
Our service
We work proactively with buy-in candidates and teams to define their acquisition criteria and identify suitable target businesses.
Once a suitable target has been identified, the buy-in process is similar to the buy-out.
Management Buy-in/Buy-outs (“BIMBOs”)
Similar in nature to the buy-in and buy-out, the BIMBO is a transaction where a business is acquired by members of the incumbent management team together with external management buy-in candidate(s). The BIMBO is a particularly useful means of bridging any skills gap in a buy-out team.
Funders look for “balanced” management teams and a BIMBO allows a balanced team to be constructed.
The majority of BIMBO transactions arise as a result of us:
- Working with management buy-in candidates with a view to identifying potential acquisition opportunities; or
- Working with a buy-out team where a skills gap exists. In such instances we would seek to introduce a buy-in candidate(s).
Vendor-initiated buy-outs/buy-ins
Where it is most appropriate for vendors to exit via a sale to a management team, you may wish to consider a “vendor initiated” buy-out/buy-in. This enables vendors to control the deal to a greater extent.