Definition: is the process of purchasing a company by outside investors that tend to preserve the established management team and limit their involvement to assigning their representatives to the organization’s board of directors. Such buy-ins oftentimes occur when the investors believe that the company’s products or services can generate greater revenue if the enterprise introduces changes to its strategies and goals, improves its policies and procedures, or if it can benefit from a capital infusion.
In a Sentence:
After seeing how mismanaged Z-Rock is, the Ascension investment group decided to perform a management buy-in and return the company to its former glory. Considering the rich pool of resources available to former music industry giant, that shouldn’t be a problem.
We should consider the option of executing a management buy-in with Michigan Steel. Their management team is extremely professional, but they lack the appropriate capital to get back on track.
Synonyms and related words: buy in, venture capital, management buy-out