Buy-In Management Buyout - BIMBO

To understand this one, you'll need some background.

A management buyout occurs when the management of a company purchases shares or assets of the company. This can be done when the owners decide to retire and let the remaining managment become owners, for instance.

A management buy-in involves outside managers buying into the company, but leaving the current management in their current place.

The Buy-In Management Buyout (or BIMBO for short) combines these two. In this case, current management stays in the company, buying out current owners, and the external managers also buy shares, buying into the company. This can be ideal, as it brings in fresh talent, but also keeps the knowledgeable team around to help the new people get acclimated.

A noted downside to this transaction is the risk of people getting territorial and not wanting to blend the old and the new. How many movies have you seen where people in offices bicker over random things? This transaction can create ideal conditions for such bickering...if not managed well.