Buy-In Management Buyout - BIMBO

Filed Under: ,
Dictionary Says

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 Says

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.

comments powered by Disqus
Hot Definitions
  1. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and agricultural products.
  2. Private Equity

    Equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity.
  3. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  4. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  5. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  6. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
Trading Center