In a management buy-in (MBI), an outside operator buys a business they'll then run. You bring the experience but not the existing ownership or insider knowledge of the business. Lenders do fund MBIs, including first-time owners, where the buyer has clear sector pedigree.
What lenders look for in an MBI buyer
- Real sector experience: you've run, managed or worked at a senior level in the same industry.
- A credible plan for taking over and running the business.
- Your own contribution to the deal, and the right capital structure.
Why MBIs are seen as riskier than MBOs
You don't know the business from the inside, so lenders usually want deeper due diligence and a good handover from the seller. A seller who leaves part of the price in the business through vendor finance helps. See What is vendor finance?.
An example from our deals
A premium home furnishings business in the South West (£225,000) was bought by an external operator using an unsecured stack: a £200,000 specialist facility plus £25,000 from a government scheme.
First time buying a business?
Last reviewed: 8 October 2026