Buy-In Management Buyout - BIMBO


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.

BREAKING DOWN '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.

  1. Venture Capitalist

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  2. Management Buyout - MBO

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

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

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

    A type of leveraged buyout in which a financial sponsor or private ...
  6. Leveraged Buyout - LBO

    The acquisition of another company using a significant amount ...
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