A Management Buy-Out is a solution involving a buyout of a company, subsidiary, division or product line, often initiated by the management. This could be the case when a company or division is not regarded as core business by the current owners. Other reasons could be that the management disagrees with the current owners about the future corporate strategy or as a result of a failed selling process where the only buyer is the current management.
Management Buy-In is the term applied when an outside management team buys a stake in an existing business. Typically this is a result where the business is under-performing due to weak management or to lack of suitable expertise. Another possible reason is that the road ahead requires other management-skills than those currently held by the existing management.
M&A Worldwide partners have contributed to several MBO/MBI structures, serving the management team in structuring the business case, negotiating with the current owners and contributing to find co-investors to buy the target.