Management Buy-In (Mbi) Definition

Management buy-in (MBI) occurs when the management of a company agrees to be bought out by another company or entity. This usually happens when the management team is looking to take the company in a new direction or wants to change the way that the company is run. Management buy-ins can also occur when a company is struggling and the management team wants to inject new life into the business. In some cases, management buy-ins are done in order to avoid a hostile takeover by another company.