Buy-In Management Buyout (BIMBO)
A Buy-In Management Buyout (BIMBO) is a form of corporate acquisition where existing management teams and external managers collaborate to acquire a company. In a BIMBO, the existing management retains some level of control and ownership, while the external managers bring in additional expertise, funding, and strategic direction. This hybrid approach allows the company to benefit from the continuity and knowledge of the current management team, while also gaining new perspectives and capabilities from the incoming managers.
Example
A manufacturing company’s existing management team partners with an external group of managers to buy out the company’s current owners. The external managers bring fresh capital and strategic vision, while the current management ensures operational continuity.
Key points
• A BIMBO involves both existing and external managers acquiring a company.
• Combines continuity from current management with new expertise from external managers.
• Often used when the current management needs additional skills or resources.
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