Management Buy-In (MBI)

A Management Buy-In ("MBI") is when a business is sold to an outside management team.

An Management Buy In (MBI) usually occurs when:

  • the business is under performing and would benefit from additional 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 independent business and not owned by any of the 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.