PME MAGAZINE

MBO

Management buy-out. This is typically where an existing management

team buys the company in which they work from the shareholder(s).

• IBO

An institutional buy-out. An institution will acquire a company and

incentivise a management team to run it for them.

• MBI

Management buy-in. A new management team acquires a business from

shareholder(s) and replaces the incumbent management.

• BIMBO

A combination of an MBO/MBI. An existing management team is joined

by at least one new manager as it acquires the company.

• VIMBO

A vendor initiated MBO, where the owner encourages and facilitates the

management team taking ownership of the company.