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Management Buy-In (MBI)
A Management Buy-In ("MBI") is when a business is sold to an outside management team. A manager or management team outside the company raises the necessary finance to buy it, there is on puchase a change of management
An MBI usually occurs when:
- the business is underperforming and would benefit from additional possibly more experienced management input
- the MBI team have specific sector knowledge and can take the business forward
MBI's are traditionally more difficult to fund than MBO's. The lenders have to be convinced that the MBI team (or MBI candidate) have a sufficient experience and the ability to deliver.
An MBI candidate would typically have to have the following attributes:
- a proven successful business background
- a business leader with drive and enthusiasm
- able to risk personal capital
At Sterling Capital Reserve Ltd, we regularly act for MBI candidates in respect of business acquisitions. MBI's do not necessarily have to be multi million pound businesses. We have acted for many MBI's in respect of businesses in the 500k to 5million turnover sector.
As we are an independant business and not owned by any of tha larger accountancy practices, we can undertake MBO's at "sensible fee" rates.
With access to many innovate and aggressive debt finance providers, most of our MBO's have been funded without the need for Venture Capital.
Sterling Capital Reserve Ltd
Sterling House
10 Wheatcroft Business Park
Landmere Lane, Edwalton
Nottingham NG12 4DG
Tel: 0115 984 9800
Fax: 0115 921 5550
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