Buy-In Management Buyout - BIMBO

AAA

DEFINITION of 'Buy-In Management Buyout - BIMBO'

A form of a buyout that incorporates characteristics of both a management buyout and a management buy-in. A BIMBO occurs when existing management - along with outside managers - decides to buyout a company. The existing management represents the buyout portion while the outside managers represent the buy-in portion.

INVESTOPEDIA EXPLAINS 'Buy-In Management Buyout - BIMBO'

This option provides the best of both worlds of a buy-in and a buyout. For one thing, you can expect that the transfer will be made much more efficiently, because the existing members of management are already familiar with the business that is taking over. The management buy-in most likely will bring in outside individuals with a certain expertise lacking in the organization and will benefit the firm greatly.

However, a BIMBO may not be so perfect. Tension may arise between the firm's employees and new members of management. If the employees feel threatened by the new management, the firm's performance may decline.

RELATED TERMS
  1. Management Buyout - MBO

    A transaction where a company’s management team purchases the ...
  2. Takeover

    A corporate action where an acquiring company makes a bid for ...
  3. Institutional Buyout - IBO

    When an institutional investor, such as a private equity firm ...
  4. Secondary Buyout

    A type of leveraged buyout in which a financial sponsor or private ...
  5. Buyout

    The purchase of a company's shares in which the acquiring party ...
  6. Management Buy-In - MBI

    A corporate action in which an outside manager or management ...
Related Articles
  1. Mergers And Acquisitions: Understanding ...
    Fundamental Analysis

    Mergers And Acquisitions: Understanding ...

  2. What Are Corporate Actions?
    Bonds & Fixed Income

    What Are Corporate Actions?

  3. The Basics Of Mergers And Acquisitions
    Options & Futures

    The Basics Of Mergers And Acquisitions

  4. How Mergers and Acquisitions Can Affect ...
    Investing Basics

    How Mergers and Acquisitions Can Affect ...

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center