[1] A management buy-in team often competes with other purchasers in the search for a suitable business.
Usually, the team will be led by a manager with significant experience at managing director level.
The difference to a management buy-out is in the position of the purchaser: in the case of a buy-out, they are already working for the company.
In the case of a buy-in management buy-out, the team that buy out the company are a combination of existing managers, who retain a stake in the company, and individuals from outside the company who will join the management team following the buy-out.
[1] The term BIMBO was first used in respect of the purchase of Chaucer Foods, a Hull based crouton manufacturer, from Hazlewood Foods plc in 1990.