Buy-In Management Buy-Out (BIMBO)

A BIMBO is a hybrid acquisition combining a Management Buy-Out (MBO) and a Management Buy-In (MBI): incumbent managers repurchase the company alongside incoming external managers who bring new competencies. This structure is particularly suited to situations where the existing team has operational depth but lacks capabilities in specific areas — international development, digital transformation, commercial leadership — that incoming managers bring. It mobilises the same financial structuring tools as a classic LBO: senior debt, mezzanine, and a management package to align incentives.

‍

Example: the founder of a Swiss CHF 20.0 million revenue company wishes to sell while retaining 20% equity. Two internal managers and an external commercial director co-invest CHF 2.5 million of equity, complemented by CHF 12.5 million of senior debt, to acquire 80% of the company valued at CHF 18.5 million. The BIMBO provides operational continuity while adding the missing commercial profile needed to drive the growth plan.

‍

Hectelion structures and advises on BIMBO transactions end-to-end, from valuation and financing to management package design and SPA negotiation.