MBI (Management Buy-In)
An acquisition where an external management team buys into a company, replacing or supplementing existing management.
Also known as: Management Buy-In
One-line definition
In an MBI, a new management team from outside the target acquires the business, bringing fresh leadership — typically used when the incumbent team is retiring or underperforming.
Risks vs MBO
The incoming team lacks operational knowledge, so integration risk is higher. Lenders and PE sponsors demand more thorough due diligence to compensate.
Related terms
MBO (Management Buyout)
A transaction in which the existing management team acquires the company, typically with backing from a private equity sponsor.
LBO (Leveraged Buyout)
An acquisition financed primarily with debt, where the target's cash flows service the leverage and equity returns are amplified.