Management buy-in (MBI)

What does a management buy-in (MBI) look like?

A management buy-in is a form of business acquisition in which an external manager acquires a business without prior involvement. The company can be acquired by a single experienced entrepreneur/manager or by a complete management team. The current management of a company is replaced by the new owner or owners.

There are two kinds of management buy-ins: you, as the new owner, can immediately acquire 100% of the shares, or you acquire the shares over time, in parts. Whether a management buy-in is right for you, always depends on the situation and the wishes of you as an MBI candidate and the target company. It might be a logical step for you if you:

• have a successful track record at an SME (small and medium-sized enterprise);
• have a (middle) management position in a multinational corporation;
• have wanted to manage your own business for years;
• want to use your acquired knowledge and experience to acquire a company.

Not everyone is qualified to become a (partial or full) owner through a management buy-in. Successfully managing a business requires significant experience, the right qualifications and the necessary capital. However, these factors should not hinder you from realising your dream of owning a business or advancing in your career. If you're an MBI candidate looking for a business to acquire, we'll explore the possibilities together and create a comprehensive search profile to get started.

Buying into a business

When buying into a business, it's important to have the right priorities and a comprehensive understanding of the entire sale process. This includes financial, legal and tax aspects. Are the seller's statements accurate? Is further investigation needed? What about business valuation and financing? In all these matters, it's wise to have an experienced sparring partner. Someone who knows the ins and outs and advises and supports you, especially because emotions can run high. The specialists at Marktlink help you assess the purchase accurately, provide input for price negotiations, enhance the chances of success and offer favourable terms . We guide you through the necessary steps and provide input on aspects such as the acquisition contract, shareholder agreements, management agreements, financial aspects, etc. We have an extensive database of (passive and active) buyers and sellers, allowing us to assist you in finding a suitable business to acquire.

Why would a seller opt for an MBI strategy?

We provide you with the opportunity to connect with entrepreneurs who have established their own businesses and are looking for a successor. As an MBI candidate, you are an attractive option for the entrepreneur to get involved in the business and play an active role within the organisation. The benefits for a seller are:

• External managers bring a fresh perspective to the business. They often bring new insights, experiences and new ideas that can lead to innovation and growth within the company. They are quicker to identify inefficiencies, weaknesses and opportunities for improvement than the current management.
• External managers can bring their own knowledge, experience and skills and apply these to the company to improve strategies, financial planning, marketing strategies and other aspects.
• An external management team can also bring an extensive network of contacts and relationships, opening up the possibility for new partnerships, clients and market opportunities that were previously inaccessible.
• Changes can often be implemented quicker because external management is not bound by existing company cultures or structures. This enables them to make swift changes that benefit the company.
• Additionally, an MBI candidate can revitalise a struggling company and save it from insolvency. Essentially, an MBI provides the dynamic boost and expertise needed to grow and thrive, even in challenging circumstances.

An advisor in an acquisition by an MBI candidate

In any case, a management buy-in requires a structured approach from start to finish. Our specialists help you in this process and ensure you take the right steps. We guide you in making the right choices, determine what is feasible and what type of business aligns best with your ambitions and background. Once we have this mapped out, we approach interesting companies, develop a financing structure and guide you through the entire acquisition process successfully. With this approach, we ensure the smooth acquisition process of a management buy-in and together, we realise your ultimate entrepreneurial dream.