MANAGEMENT BUYIN'S (MBI) AND BUYOUT'S (MBO)

Catalyst Ventures specialises in working with "Buy In" and "Buy Out" teams.

A "Buy In" is the acquisition of a company by a new management team, generally backed with funding provided by a private equity investor. A "Buy Out" is the acquisition of a company by the existing management team backed by a private equity investor.

Buyins and Buyouts have represented the fastest growing area of private equity activity over the last decade, and a number of variations on the concept have evolved:

• The BIMBO - a combined buyin/buyout, where the management team is a mixture of incumbent and new directors

• The IBO - institutional buyout, where a private equity investor itself identifies and acquires a target company and employs a team to manage it

• Public to Private transactions, where a publicly quoted company is acquired by investors and management and delisted from the quoted market

• Secondary buyins, where existing private equity investors and management of a company are bought out and replaced with a new management team and investors

Catalyst Ventures can help build management teams, develop business plans, identify funding sources, and negotiate funding.

Our guide to management buyouts is available from the download section of this website.

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