Management Buy-Ins (MBI)

Renatus case study

  • A management buyout (MBI) can be a great opportunity for you to take a stake in a company to replace an outgoing management team.
  • In 2014, Renatus supported David and Andrew Maxwell in funding the Management Buy-In of the business from its founding shareholders.
  • Renatus provided the capital, strategic and operational capability necessary to fund the successful expansion of the business from five restaurants to seventeen in the three years post-acquisition.

What Is a Management Buy-In (MBI)

  • A management buy-in (MBI) is a corporate action in which an outside manager or management team purchases a controlling ownership stake in an outside company and replaces its existing management team. 

Why an MBI?

  • The target company is acquired by outside investors when the company’s decision-makers consider it to be underperforming, and the company’s products could generate greater than current yields with the proposed change in current business strategy and/or management.
  • This strategy is particularly relevant when a company requires fresh leadership and expertise to navigate new challenges or capitalise on untapped opportunities.

Key components;

  • External Management Team: MBIs bring in new leadership to guide the company’s future, making them a strategic choice for businesses seeking transformation.

  • Investor Funding: External investors, which may include private equity firms such as Renatus, provide the financial resources required for the buy-in and the subsequent growth of the company.

  • Operational Revitalization: MBIs often signal a change in business direction and strategy, making them an excellent choice when a company is in need of a new vision.

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