Glossary

With over 200 terms in both English and French, our M&A Dictionary is designed to help you better understand the key words and concepts related to the sale oe purchase of a business in Canada.

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Management Buy-in

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Category: Mergers and Acquisitions

Definition:

A management buy-in (MBI) in the context of mergers and acquisitions (M&A) refers to a transaction where an external management team, often led by one or more individuals from outside the target company, acquires a significant ownership stake in the business. This is a different scenario from a management buyout (MBO), where the existing management team of a company acquires the business. In a management buy-in, the acquiring management team may bring industry expertise, new strategic insights, or specific skills that they believe can contribute to the growth and success of the target company. The buy-in typically involves a combination of equity investment, debt financing, and potentially other financial instruments to fund the acquisition.