Management Buy-In - MBI

What is a 'Management Buy-In - MBI'

A management buy-in (MBI) is a corporate action in which an outside manager or management team purchases an ownership stake in the first company and replaces the existing management team. This type of action can occur due to a company appearing undervalued or having a poor management team.

BREAKING DOWN 'Management Buy-In - MBI'

There are a wide range of management teams, such as hedge funds and other companies, that look for undervalued companies to purchase. If they find a company that fits with their investment criteria, they will often purchase the company and make it private to unlock the value. More often than not, they replace the management team with their own, which they feel will do a better job at running the company.

RELATED TERMS
  1. Buy-In Management Buyout - BIMBO

    A form of a buyout that incorporates characteristics of both ...
  2. Active Management

    The use of a human element, such as a single manager, co-managers ...
  3. Management Buyout - MBO

    A transaction where a company’s management team purchases the ...
  4. Multiple Managers

    A situation that occurs when an investment portfolio's assets ...
  5. Funds Management

    The management of the cashflow of a financial institution. The ...
  6. Management Investment Company

    A formal name for a company that sells and manages a portfolio ...
Related Articles
  1. Financial Advisor

    Artisan Partners: Investment Manager Highlight (APAM)

    Learn about Artisan Partners Asset Management, including its unique business model and diverse selection of investment strategies.
  2. Markets

    What is a Management Buyout?

    A management buyout, or MBO, is a transaction where a company's management team purchases the assets and operations of the business they manage.
  3. ETFs & Mutual Funds

    What Fund Managers Do

    A fund manager is responsible for implementing a fund’s investing strategy and managing its trading activities.
  4. ETFs & Mutual Funds

    Team Players Vs. All-Stars For Mutual Fund Management

    Mutual funds vary in terms of their management structures and one size generally does not fit all investors.
  5. Trading

    Evaluating A Company's Management

    Financial statements don't tell you everything about a company's health. Investigate the management behind the numbers!
  6. Financial Advisor

    Wells Capital Management: Investment Manager Highlight (WFC)

    Read about Well Fargo & Company's institutional asset management subsidiary Wells Capital Management, a firm with over $348 billion in assets under management.
  7. ETFs & Mutual Funds

    Should You Follow Your Fund Manager?

    Learn how to tell if a fund in flux is still a suitable investment.
  8. Financial Advisor

    Why Advisors Should Team Up

    More than half of all practicing financial advisors now work in teams, says a recent study. Here's why.
  9. Managing Wealth

    Preparing For A Career As A Portfolio Manager

    Find out what it takes to win a spot in one of the most coveted financial careers.
  10. Managing Wealth

    Project Manager: Career Path & Qualifications

    Learn more about what project managers job, the qualifications necessary for the position and the most common careers for these professionals.
RELATED FAQS
  1. Why are corporations so concerned about their stock price?

    When the share price of a company is high or increasing, generally corporations, or more specifically their management teams, ... Read Answer >>
  2. Where do most fund managers get their market information?

    Many fund managers, whether they manage a mutual fund, trust fund, pension or hedge fund, have access to resources that the ... Read Answer >>
  3. What percentage of asset management firms are privately held and not publicly traded?

    Explore asset management firms, a major part of the financial services sector, and learn about the respective markets served ... Read Answer >>
  4. What is the difference between passive and active asset management? (SPY)

    Find out about active asset management, passive asset management, how these strategies are utilized and the differences between ... Read Answer >>
  5. Where does a hedge fund get its money?

    Learn how a hedge fund is structured and how the managing partner of the fund goes about the process of finding and soliciting ... Read Answer >>
  6. What is the difference between passive and active portfolio management?

    Understand the difference between active portfolio management and passive portfolio management, and how each strategy benefits ... Read Answer >>
Hot Definitions
  1. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  2. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  3. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  4. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  5. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  6. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
Trading Center